Tackle Today: “Matt, I want you to pop your collar.”
July 30, 2019
≈ “I am not popping my collar.” ≈
I guess younger siblings have at least one clear goal in life: to pester the older ones.
— “Matt, here’s what I want you to do. I want you to pop your collar before we leave.”
— “I am not popping my collar.”
— “Pop your collar, just one time.”
— “No.”
— “Pop your collar.”
This brief dialog between Coaches Tim and Matt contains everything you need you to know in order to fully understand the relationship between siblings. It took place during the last five minutes of Episode 277: Market Skyline, on July 9th, 2018, available on YouTube.
We’re in the middle of the earnings season and, not only that but we are also having the Federal Funds Rate tomorrow. Such a busy and unpredictable week requires you to take at least one action: pop your collar. Not that type of collar, I mean the Collar Strategy.
The Collar is an extension of the Covered Call, however, in addition to buying the stock and selling the short term OTM call option, we will also buy a protective put option.
Collar = 100 shares + 1 put – 1 call
One simple formula, one powerful strategy.
In tonight’s Coaches Show, we will be covering the Collar Strategy from the new Tackle Trading Playbook. Attend so you can learn the intricacies of this interesting options play: definition, philosophy, construction, and management.
Not a Pro member? Visit this link to pop your collar with #TeamTackle.
Chart of the Day
Pop your collar
The image above is a simplified representation of the Collar risk graph. The limited reward comes from the Covered Call. The risk mitigation part of the strategy comes from the Protective Put.
Pop your collar on the Coaches Show tonight at 8:30 PM EST.
Access the webinar here.
Video of the day
What is a Collar Option Strategy
The Collar is a neutral protective options strategy that involves simultaneously buying OTM Puts and selling OTM Calls against a specific holding in your portfolio (a long position).
Today’s line up
Traders Lounge 11 PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30 PM EST
Join coaches Tyler Craig and Grant Larsen tonight, 8:30pm EST to discuss the Collar strategy from the new Tackle Trading Playbook and help you prepare for the earnings season.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
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