Protective Collar Option Strategy
Protective Collar options trading strategies are available in the Options Wizard. This options trading strategy provides a way for clients to protect an existing position from losses below a certain amount at the cost of capping upside. To utilize this tool, please take the steps outlined below.
Instructions
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Navigate to Quote and select the Underlying asset from the left-hand side.
If you do not have an open position for the underlying, you must first buy 100 shares of the stock.
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Click the Option Wizard tab.
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Click Protect a Position.
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Click Find Strategies
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Select the Maturity Date followed by a percentage or dollar amount for Protect my position in from falling more than... and Give up gains in QQQ rising more than...
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Click Find Strategies.
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A list of strategies which leverage an existing Stock position will populate in the Results panel. Select one of the Protective Collar option strategies that best suits your trading strategy.
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Once you select the strategy, the order ticket on the right-hand side will pre-fill with the desired order. Enter the additional order parameters and click Submit Buy Order to transmit.
