Hi everyone! Given the crazy events unfolding over the weekend in the middle east, I wanted to share a potential Collar position that I found using a screener I built. The program finds different collar positions over 800+ stocks given set parameters. Today, I wanted to see if there are any positions which expire 6 months out, give me a max loss of less than 2%, a min gain of 6%, with a breakeven of 2%. My scan popped out a few results, and I thought it would be fun to share one:
- Ticker: AMD (Advanced Micro Devices Inc)
- The Setup:
- Expiration: 9/18/2026
- Buy 100 shares at $200.21
- Buy one $200 Strike Put for $30.91
- Sell one $220 Strike Call for $27.20
- The Math:
- Max Gain: 8.03%
- Max Loss: 1.96%
- Breakeven: 1.85%
Collars aren't for everyone but they can provide a safety net for those who want to limit losses at the expense of limiting gains. This example shows how one can achieve solid returns in a 6 month period while limiting themselves to a low loss percentage. I hope anyone who reads this learned something, thank you!
As always this is just for education/entertainment and is NOT FINANCIAL ADVICE!!!
Posted by TheCollarCode