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.

  1. Click the Trade tab followed by Option Chain.

    Alternatively, click Menu in the top left corner > Trade > Option Chain.

  2. Enter a symbol or contract name to get started.

    The option chain panel in portal.

  3. Click the Option Wizard button.

    The option wizard button in portal.

  4. Click Protect a Position.

    The option wizard protect a position in portal.

  5. Click Find Strategies.

    The option wizard protect position find strategies button in portal.

  6. Click the desired Maturity Date.

    The option wizard protect position select a date in portal.

  7. 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.

    The option wizard protect position forecast criteria in portal.

  8. 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.

    The option wizard protect position strategies panel in portal.

  9. Once you select the strategy, the leg details will pre-populate on the screen. Click the Order button to enter the additional order parameters.

    The option wizard protect position select a strategy panel in portal.

  10. Review your order and click Buy Order or Sell Order at the bottom of the screen to submit.

    The option wizard protect position order ticket in portal.

  11. Navigate to your Portfolio to view this position.

  12. Click on the collar position to expand and view legs.

 

Additional Resources