A method used by investors to reduce the downside risk of a stock position. It is created by buying an equity put option with a strike price below the price of the equity and at the same time, selling an equity call option with a strike price above the equity price. Equity collars are intended to protect profits and not to increase equity's returns.
Related information about equity collar:
- CBOE - Equity Option Strategies - Equity Collar
The Equity Strategy Workshop is a collection of discussion pieces followed by interactive worksheets. The workshop is designed to assist individuals in learning ...
- Collar (finance) - Wikipedia, the free encyclopedia
Contents. 1 Equity Collar. 1.1 Structure; 1.2 Example. 2 Interest Rate Collar. 2.1 Structure; 2.2 Example. 3 Why do this? 4 References ...
- Equity Collar
Would you like to protect your concentrated equity position from a decline in the stock price but reduce the up-front costs of hedging? An equity collar strategy ...
- Putting Collars To Work
Dec 3, 2008 ... An equity collar is created by selling an equal number of call options and buying the same number of put options on a long stock position.
- What is equity collar? definition and meaning
Definition of equity collar: A method used by investors to reduce the downside risk of a stock position. It is created by buying an equity put option with a strike ...
- Managing Risk Using Options: Equity Collars and Cash-Secured ...
Oct 24, 2012 ... Equity collar: long stock, long puts and short calls, in equal quantity. A collar is a risk management strategy that essentially combines a covered ...
- Equity collar - Financial Dictionary - The Free Dictionary
The simultaneous purchase of an equity floor and sale of an equity cap. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add ...
- Monetizing Equity Collar - The Bank of New York Mellon - BNY Mellon
A Monetizing Equity Collar is a structure combining an equity collar with a loan. This structure hedges a significant portion of the downside risk of a stock, while ...