The Collar Strategy

Online Streaming Video Program with Downloadable Workbook

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. It involves a long stock position (we buy the stock) and a short option position (we sell the call option). The collar strategy adds a third component to this trade, a protective put. This 3-legged trade creates a floor on the downside and a ceiling on the upside. When structured properly, we are protected against a catastrophic share price decline and enjoy a net credit on the option side. 

This program will highlight:

• Collar definition
• Collar hypothetical example
• Risk/reward profile
• Collar applications
• How to construct a collar trade
• How to enter a collar trade
• Multiple real-life examples
• The BCI Collar Calculator
• Types of collars
• Note about exit strategies