The Options Collar: A Cheap Hedge
A collar hedges a concentrated stock cheaply: own the shares, buy a put for a floor, sell a call for a cap. We trace a real SPY collar through June's selloff.
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A collar hedges a concentrated stock cheaply: own the shares, buy a put for a floor, sell a call for a cap. We trace a real SPY collar through June's selloff.
A covered call sells a call against stock you own for premium income. We trace one real SPY call to show the income and the capped-upside tradeoff.