Markets are in constant motion, and if you have a long position in an asset, you may be wondering how to manage your risk. A protective collar strategy is an options strategy that addresses market ...

A collar strategy is an options trading strategy that involves holding a long position in an underlying asset while simultaneously buying a protective put option and selling a covered call option.

In finance, the term "collar" usually refers to a risk management strategy called a protective collar involving options contracts, and not a part of your shirt. But, using a protective collar could ...

Interest rates affect the pricing of at-the-money options. Rising rates now make ATM call options more expensive than puts. An option collar of stock by selling a call and buying a put is more ...

Federal Reserve rate hikes may be drawing to a close, but investors still face a grim economic forecast heading into 2024. Given waning U.S. consumer strength and mounting U.S. household debt, further ...

GLD and gold in general have surged higher in recent weeks. But gold is cyclical. I prefer to express my gold position through options alone, or via an option collar. I provide timely insight on those ...

To manage the latest bout of market volatility, consider adding an option collar strategy to help limit a portfolio's downside. For the truly option-phobic adviser, don't worry — collar strategies are ...

Consistent market volatility has become the new normal for traders. Everything from geopolitical conflicts to erratic policy decisions to unprecedented news cycles has markets swinging in ways that ...

Investors can wind up with a concentrated stock position in different ways. But it's most often from an inheritance, founder, or employee with company stock. Or a long-term investor bought shares ...

Options trading allows investors to limit their risk and leverage their capital, but it can also expose them to amplified losses. It’s one of the most flexible trading styles because of the many ...

Discover capped options, their mechanics, and benefits. Learn how they limit profits and trigger automatic exercise at specific price points for effective risk management.