Someone from InvestorVillage posted a NVDA collar trade:
long 100 shares of stock - $33.95
Sold Nov 32.5 Call - $ 2.65
Bought Dec 30 Put - $ 1.05
Margin required: $3000+
The covered call portion (long stock-nov call) is a synthetic equivalent to a short naked put. Thus the whole collar is the same as a nov/dec diagonal spread:
-nov 32.5p
+dec 30p
Margin required: $225
NVDA will announce their numbers, Nov 9th.
Margin required: $3000+
The covered call portion (long stock-nov call) is a synthetic equivalent to a short naked put. Thus the whole collar is the same as a nov/dec diagonal spread:
-nov 32.5p
+dec 30p
Margin required: $225
NVDA will announce their numbers, Nov 9th.
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