top of page

Long Stock plus Collar Payout Example.

​

The example below illustrates the payout of a collared position, consisting of the combination of a long stock position, a short call and a long lower strike put, all for the equal units of underlying.

 

The investment in the strategy is $100, with the call and the Put in the example each having a price of $3. The costs of the premiums in the example offset each other.

bottom of page