· New break-even: $29.71 · Sell at the Bid: MSQHR.X (26.00-strike OTM call) for $0.54 · Buy at the Ask: MSQTD.X (24.00-strike OTM put) for $0.25 Net Credit on the Collar: + $0.29
NOTE: It's best to establish your Collar position after a market rally (the market goes up). When the underlying stock goes up, the call option premiums inflate and the put option premiums deflate. Since you want to SELL CALL options (take in $$$) and BUY PUT options (pay out $$$) for this strategy, this makes it cheaper for you to setup the play.
Check back here often to monitor possible positions as the markets change.
''
Options involve risk and are not suitable for all investors. This is an informational tool only. It is not intended for trading purposes, and is not a recommendation or suggestion to buy or sell securities. Be smart, trade with caution, and consult with a broker and various sources before doing so.
