collar

The great dilemma for options traders is well known: Options close to expiration cost less but expire soon. Options with more time to develop profitably cost more. How do you balance these conflicting attributes? Trading options very close to expiration and containing little or no time value...

The problem for anyone in the market is the threat of loss. Owning stock means you risk a decline in the price, and this is where some specific options-based protective strategies are exceptionally valuable. One such strategy is the collar. The collar has three parts: 100 shares of stock, a...

The short call is an intriguing position to open, if only because so many traders see it as way too risky to even consider. But some strategies are perfectly suited to take advantage of two great short call features: offset of risk, and premium receipt.  One variation is the short call...