Day 4: The Collar Strategy

Lesson /35 | Study Time: 45 Min
# The Collar Strategy

## Strategy Components
- Long stock position
- Covered call leg
- Protective put leg
- Net cost/credit considerations

## Setup Guidelines
- Strike price selection
- Expiration coordination
- Zero-cost collar concept
- Position sizing

## Active Management
- Adjustment triggers
- Rolling techniques
- Assignment handling
- Exit strategies

## Applications
- Long-term holdings
- High-value positions
- Earnings protection
- Portfolio hedging