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Options Strategy Lab: The rolling collar trade
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OT-December 2005-4
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Detailed Description
This system tries to outperform a buy-and-hold position in the Nasdaq 100 tracking stock by using Long-Term Equity AnticiPation Securities (LEAPS), which are options with at least a year to expiration. The strategy buys both the underlying market and long-term puts (for protection), while selling near-month calls to collect income.
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