Isn't a collar just a glorified put credit spread?

Discussion in 'Options' started by kfir, Mar 28, 2017.

  1. The distance between the long put and the short call can be substantial. If the stock falls slowly toward the long put you're losing money on the underlying with no corresponding gain on the put.
     
    #11     Mar 31, 2017
  2. yep. asymetrical distance of the strikes would do it.. although the skew shifting would mitigate some ..together with vol shift as ticker goes down.
     
    #12     Mar 31, 2017