Trading Option Collars

Business & Finance, Finance & Investing, Investments & Securities
Cover of the book Trading Option Collars by Adam Warner, Pearson Education
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Adam Warner ISBN: 9780132842594
Publisher: Pearson Education Publication: July 28, 2011
Imprint: FT Press Language: English
Author: Adam Warner
ISBN: 9780132842594
Publisher: Pearson Education
Publication: July 28, 2011
Imprint: FT Press
Language: English

This is the eBook version of the printed book.

The basic option strategy known as a “collar” has achieved some degree of popularity in recent years. Investors generally use it in a simple fashion. They own a stock. Stock rallies. They want to lock in some gain but still participate in more upside. So they slap on a simple collar. Generally, that involves buying a modestly OTM put and shorting a modestly OTM call in quantities exactly equal to the stock they already own. And generally at prices such that the premium received on the call "pays for" the put. And that's it. But there's so much more. In this short piece, the author expands on this basic option trading strategy. How about playing with the ratios of the options to the stock? Or to themselves? How about we do everything in reverse: Short the stock and protect it with long OTM calls....and "pay for" those calls with short OTM puts? How do you manage any of these positions? What is the cost of capital on all of this? The author covers all of these possibilities.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

This is the eBook version of the printed book.

The basic option strategy known as a “collar” has achieved some degree of popularity in recent years. Investors generally use it in a simple fashion. They own a stock. Stock rallies. They want to lock in some gain but still participate in more upside. So they slap on a simple collar. Generally, that involves buying a modestly OTM put and shorting a modestly OTM call in quantities exactly equal to the stock they already own. And generally at prices such that the premium received on the call "pays for" the put. And that's it. But there's so much more. In this short piece, the author expands on this basic option trading strategy. How about playing with the ratios of the options to the stock? Or to themselves? How about we do everything in reverse: Short the stock and protect it with long OTM calls....and "pay for" those calls with short OTM puts? How do you manage any of these positions? What is the cost of capital on all of this? The author covers all of these possibilities.

More books from Pearson Education

Cover of the book CCVP CIPT2 Quick Reference by Adam Warner
Cover of the book Mastering Derivatives Markets by Adam Warner
Cover of the book Charisma by Adam Warner
Cover of the book CCNA Cloud CLDFND 210-451 Official Cert Guide by Adam Warner
Cover of the book Designing the Conversation by Adam Warner
Cover of the book The HDR Book by Adam Warner
Cover of the book Documenting Software Architectures by Adam Warner
Cover of the book Level 2: Gandhi by Adam Warner
Cover of the book Absolute Beginner's Guide to Minecraft Mods Programming by Adam Warner
Cover of the book Apache Cordova 3 Programming by Adam Warner
Cover of the book Four Ways to Start Your Own Business by Adam Warner
Cover of the book eBay in a Snap by Adam Warner
Cover of the book Adobe FrameMaker 9 Classroom in a Book by Adam Warner
Cover of the book Canon EOS 60D: From Snapshots to Great Shots by Adam Warner
Cover of the book The Leader's Guide to Influence by Adam Warner
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy