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-   -   J L Lord's collar strategy book (http://www.elitetrader.com/vb/showthread.php?t=66507)

fh2000 Mar 30th, 2006 03:45 PM

J L Lord's collar strategy book
 
I have seen this book being mentioned in Optionetics, but I can't seem to find the website that sells this book. I heard it is $300 a copy.

Has anyone read or heard about this book? What is your opinion about it?

optioncoach Mar 30th, 2006 03:50 PM

$300 for a book on collars???

www.888options.com look up collar strategies :D

That will be $200 please we are having a sale today.

fh2000 Mar 30th, 2006 08:41 PM

I see how you liked the book. :)

Well, it is supposed to be some kind of "managed collar strategy". You own or buy stocks, then buy puts for protection. Instead of selling calls right away like the basic collar strategy, you would wait until neutral or bearish then sell calls.

When stock goes down, you sell the puts for profit and buy more stocks from the profit.

What I am not clear about is the timing of when to roll up or down your puts and calls. That's why it costs $300, I guess.

optioncoach Mar 30th, 2006 09:42 PM

You described it pretty well. I bet with some study you can come up with your own way to trade it.

AmbushHillbilly Mar 31st, 2006 08:23 AM

Quote:

Quote from fh2000:

...You own or buy stocks, then buy puts for protection. Instead of selling calls right away like the basic collar strategy, you would wait until neutral or bearish then sell calls...


If you're buying puts for protection aren't you already bearish?

fh2000 Mar 31st, 2006 02:57 PM

My motivation of understanding this managed collar strategy is because of our ESPP stocks for both myself and my wife's. A large portion of them are in regular accounts and not in IRA.

For whatever reason, people are emotionally attached to their stocks. So am I, I guess, specially these are your own companies. Plus, I do not want to pay capital gains unless it is absolutely necessary. I would like to keep the stocks; protect the possible down turn; and enjoy the up turn as much as possible.

The traditional collar strategy calls for buying puts and selling calls at the same time. This provides protection, but also limits the upside. Therefore, it is a conflict to what I wish to accomplish. I do not think this is a bearish strategy. Puts are there to provide the insurance.

I think what I need to figure out are, amoung other things:
1. How not to spend too much to buy the insurance.
2. How not to have my stocks getting called away if I sell calls.

I welcome any suggestions, flames, criticism. I opened my mouth, and will certain expect any unexpected from you all experienced traders. :)


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