Explore Your Options by Jay Kaeppel
THE “OPEN COLLAR” STRATEGY
I read your column on the collar strategy with interest. I like the hedging aspect of the strategy but find the limited profit nature of the strategy to be quite unappealing. Is there any way to hedge with a collar without limiting profit potential?
Yes, in some cases, there are ways. There is a little-known option trading strategy that I refer to as the “open collar” ...