Help Solve Collar Position

[spindr0]

Quote from jones247:

How would you "trade around the core position with a credit put spread? Having a collar allows dynamic hedging by scalping and/or building your equity position as the market bounces off support/resistance levels.

Unless I'm missing something, the best a bull put spread can do is adjust and roll the spreads as the market fluctuates from support and resistance levels. However, that is so much more expensive with options, as compared to stocks.

btw, there's some literature on calendar collar hedging, by Tsuei Consultants that discusses dynamically hedging calendar collars.

IMO, it's very difficult to dynamically hedge a collar if the market is trending, particularly against the short option position.

If you already own the stock, you use the options to achieve a collar. If one is thinking about doing a collar from scratch, the synthetic vertical is the better choice.

I don't get the point of it being more expensive with options than stocks. To do what?

As for Tsuie, I've seen some of their site. When someone telks you how good you can do by buying the stock and the puts and legging into the short calls at a later time/date, my reception shuts down.