Protective Collar Option Strategy
Instructions
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.
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Navigate to the Trade button and select Option Wizard.
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Click the underlying position for the Protective Collar Option Strategy.
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Click Option Wizard listed under your underlying position.
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If you have a multi-client account structure, click the account you would like to place the options trade for and select Next.
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Click Protect a Position.
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Click Find Strategies.
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Click the desired Maturity Date and select Next.
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Click the + or - signs next to Protect my position in from falling more than... and Give up gains in QQQ rising more than.... Click Next once the information is entered.
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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 leg details will pre-populate at the bottom of the screen. Click the Order button to enter the additional order parameters.
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Review your order and slide the bar at the bottom of the screen to submit.
