Learn to trade options: Creating a collar strategy

A collar is an option strategy in which a trader holds a position on the underlying stock and simultaneously buys a protective put while selling a call option against the same stock. In most cases, both options expire within the same month. This strategy protects the trader against the sharp decline of the share price while still earning an option premium from writing the covered call. In this video, we'll explain how to construct a collar strategy in Questrade IQ, and how to calculate your potential profit and loss using a detailed example. Sign up for a free practice account http://www.questrade.com/platforms/free_trial.aspx Open an account http://www.questrade.com/account/online.aspx. Questrade Advantage Sign-up for the Questrade Advantage to trade single- and multi-leg options for only $6.95 + 75 cents per contract. Learn more about collars http://help.questrade.com/how-to/iq-web/stock-and-option-quotes/options/option-strategies/collar

Comments

1. You sir are awesome! thank you!