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Market Volatility Strategy: Collars
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 ...
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 options strategy protects stock holdings from significant losses while limiting potential gains. Investors create a collar by owning shares of a stock. They then purchase a put option below ...
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Collar Strategy
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.
The Dog Collar strategy uses put and call options to limit downside and define risk on beaten-down large-cap stocks showing signs of bottoming. I currently favor applying collars to Microsoft, UPS, ...
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