Exchange Currency

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 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:
  1. 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 ...
     
  2. 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 ...
     
  3. 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 ...
     
  4. 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.
     
  5. 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 ...
     
  6. 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 ...
     
  7. 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 ...
     
  8. 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 ...