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Hi John!
Hope you’re doing well.
My first question out of the many that I might ask over the next few days is simple,#
whats the difference between options and collars?
The only difference I can see is that you can sell collars but you cant sell options.
First you don’t sell collars !!!!
If you are borrowing money, then you can buy a put option in order to fix a maximum interest rate.
A collar is where you buy a put option and sell a call option in order to fix a maximum and a minimum interest rate (and as a result save on the cost of the premium).
You must watch my free lectures on this – I explain it all in detail, with examples. Not only is there far too much to explain here, but you cannot expect me to type out all my lectures 🙂
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