coast less collar

Zero-Cost Collar: Option Strategy

Zero-cost collar option strategy is designed to give you a bit of extra profit while also capping downside risk. In this strategy, an investor is selling a call option with a strike price above the current stock price as well as buying a put option with the strike price at or below the current price of your stock holding. This strategy can be utilized in a stock that has upside potential. MAX profit = Strike price of Short call-Purchase price of underlying- commission paid.
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