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Failure of the Collar and How to Fix It

Failure of the Collar and How to Fix It

Aired On

May / 13 / 2021
2:00 pm - EDT
Vivek Kapoor , Margaret Sundberg
Volaris Capital Management

Volaris Capital Management

Volaris Capital Management

Destruction of Value by the Collar Hedging Strategy:

  • Forsaking Upside Participation
  • Adverse Option Risk Premium Trade

Option Risk-Return Informed Hedging:

  • Risk Aware Approach to Options
  • Asymmetry of Irreducible Risks
  • Tail Risk versus Body Risk

Self-Financed Net Ownership of Options:

  • Single Stock and Index Solutions
Disclosure: Options Trading

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD) or visit ibkr.com/occ

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