Collar Strategy: Covered Call Writing with Protective Puts

Protecting covered call trades from catastrophic share loss

 Thursday March 14, 2024

7:30 PM ET – 9:00 PM ET

Private seminar for investment club

This is the strategy Bernie Madoff pretended to use. He called it the split strike conversion strategy, but it was simply a collar. The covered call sets a ceiling on the trade and the protective put guarantees a floor on the trade

Topics discussed

• Brief review of the collar strategy
• Uses for the collar
• Entering a collar trade
• Option basics for calls
• Option basics for put
• What is an option-chain?
• Real-life example using the BCI Collar Calculator
• Real-life example using the BCI Trade Management Calculator
• Summary