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Define "significant". If the stock drops, the call deltas decrease and put deltas increase unless there is a fair amount of offsetting implied volatility change. In the big picture, collaring is cost intensive since there are multiple commissions and add'l slippage. It's not something...

If you're going to Google and parse every single option related word, it might be 2016 by the time you get to the chapter on "vertical" spreads which is the same strategy as your so called vertical collar.

What part of the previous/following isn't clear? "Vertical is redundant when takling about a collar. It is assumed that all components are of the same expiration unless it is stated otherwise."

This thread has become a real chuckler :D :) Piezoe, you mandated a thank you and it appeared in 4 minutes. I'm impressed! Iplay1515, your thank you is accepted. I hope to be able to assist you in the same manner in the future :) Forex-Forex, thank you for the golden shower analogy

It has the structure of an unbalanced strangle but you can call it anything that you want :) It would be balanced with about 600 shares. Any particular reason that you chose 100 versus balanced or versus 1,000 shares?

Why make life so complicated? Just get a #2 Madoff pencil and change the - to a + on the monthly statement.

I realize that it's hyperbole but in order to amass anything significant via selling naked puts (billions), you're going to have to sell strikes a lot closer to the money, do size (over leverage?), and have some degree of success in your timing and selection. Because of the proximity of strike...

That's a good explanation of selling naked puts - applicable for the "investor" type who seeks to acquire equity at lower prices while generating current income. Good job. You did mention avoiding over leverage. It should be emphasized heavily because many noobs interpret premium credit as...

You're right and everyone else is wrong. Got it.

Your initial post asked about the construction of a vertical collar as an inexpensive way to protect a long equity position from an overnight gap down. It also indicated that you were not having much success with your searches. I gave you the words OPTION+COLLAR to Google. Yeh, there...

Ummmm, equivalent strategies constructed with different components? Check it out :)

Rhetoric? The first page of any option book's chapter on spreads defines vertical, horizontal and diagonal. Vertical is redundant when takling about a collar. It is assumed that all components are of the same expiration unless it is stated otherwise. It might be more productive if...

Looks like all you could ever want to know about option collars is now at your disposal. Time to start reading?

I do not think that you can determine direction post earnings from anything other than the reaction to the release. Post earnings behavior can be fickle. A great earnings report 2 cents shy of expectations can tank a stock. A subtle comment in the conference call can also move it either...

Yep, please rephrase. It's not clear what you're asking.

Google: OPTION+COLLAR

You won't be able to minimize time decay by rolling. The first month's purchase will lose more than 50% of value in the year before 2015's are available. I'd be more comfortable with offseting some cost by taking in some premium (verticals, calendars, etc.) but you'd regret this if the SPY...

Selling isn't more successful than buying. Or vice versa. The ones who make money are those who have good timing, selection and money management... or even just dumb luck :) As for running with the money, the premium received isn't a gift. You're selling something that has value. Unless...

Your primary concern should be further rise of the UL because you're naked and have sizable upside risk. If buying the short 100 strike call to close will incur losses at 101, you would have had to have sold it for peanuts at a far lower UL price. If so, since this situation should have...