optionsu2007

optionsu2007

Examples of the ‘Collar Strategy’ in Options Trading

Let’s take a look at how the strategy works with this position. For the sake of our illustration and to make our calculations easy let’s establish the collar using the December 27.5 put and the December 30 call, with both trading at $1.00. Remember our stock price was $28.50. The cost of the collar will [...]