Explore Your Options by Jay Kaeppel
BENEFITS OF A COLLAR STRATEGY?
I read recently about a strategy known as a “collar,” whereby you simultaneously sell a call and buy a put on a stock you hold. Is this a good strategy, and under what circumstances does it makes sense to use?
There is no such thing as a “good” strategy or a “bad” strategy. With any option trading strategy, it really comes down to how you use it and when ...