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 ...
A collar agreement is a financial strategy to manage risk by setting a range within which key financial variables can fluctuate, ensuring predictable outcomes.
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 ...
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 ...
Learn how fixed-dollar value collars can protect companies from stock price fluctuations during mergers, detailing strategy, ...
Risk management is paramount in today's market, so I use option collars for long-term stock positions to limit downside while seeking solid returns. Disney (DIS) serves as a real-world example: ...
How an options collar can help nervous traders sleep at night More specifically, a collar combines purchasing a protective put and a selling a covered call on a stock the trader already owns. Selling ...
Bitcoin has surged in recent months, but it's been prone to 80%-plus drawdowns historically. Jack Ablin says a collar option strategy provides bitcoin exposure with limited volatility. Ablin ...