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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 |
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