Just a small question (Which may sound silly), but when we as borrower are setting a collar, the strike price at which we buy a ‘put’ option has to be lower than the strike price at which we sell a ‘call’ option, isnt it?
Secondly, if we buying a Sept ‘Put’ option, do we sell sept ‘call’ options itself? or sell ‘call’ options of any other months as well to reduce the premium cost?