Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Art M who wrote (193)	9/1/1998 2:37:00 PM
From: EepOpp	Read Replies (1) \| Respond to of 355

a collar is when you sell a call and buy a put. it is a way of financing the purchase of the put with the sale of a call. but i mainly did that because i wasn't entirely sure if the market was going to keep going down. if i was that sure, i would have sold my stock as well. but i figured that if i was wrong, i could always buy back the call option and sell another one of the same strike price a few months further out. that way, i could collect a few extra points for my stock should it ever get called away. basically, it neutralized my position in the stock. i was being sarcastic, in case you're wondering about my market call...i tend to be very good at buying when i should be selling and selling when i should be buying. good luck.