Big Money Forums

Go Back   Big Money Forums > Big Money Investing - Markets, Real Estate and Trading > Derivatives, Options, Futures and Commodities
Register FAQ Calendar Radio Search Today's Posts Mark Forums Read

 
 
Submit Tools Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #1  
Unread 07-11-2011, 08:31 PM
zirjeo zirjeo is offline
Registered User
 
Join Date: Jul 2011
Posts: 2
Rep Power: 0
zirjeo is on a distinguished road
Collar options strategy trade

New to options not sure if the following trade is actually a collar or not, trying to make it as near to a costless collar as possible but I have different expirations for the put and call.

Stock(CRUS) is @ $16.1, bought 100 shares. Long.

Does it make sense to do the following...

Buy a Sept. $16 Put. Premium is $1.45

Sell a Dec. $20 Call. Premium is $1.05
The Sep. $20 Call is only a $0.4 premium.

I really don't plan on holding it past Sep. anyhow. But wanted the premiums to offset eachother.

Seeing it has a different expiration, Im not sure if this is still a Collar or if this is even an acceptable method?

thanks in advance
Reply With Quote
 


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Google
Forum Jump


All times are GMT -5. The time now is 07:05 PM.

Powered by vBulletin® Version 3.6.7
Copyright ©2000 - 2025, Jelsoft Enterprises Ltd.