Everyone is aware about the importance of money. Due to the financial turmoil that has gripped the stock market; a consumer’s purchasing power has been stretched too far in order to cut costs. In order to save an adequate amount, more and more people are using the bank to protect their earnings. Others who are more diligent work on two or three jobs to make their monthly income grow bigger. The reasons for trying to earn more vary, from the most basic to the most mundane. There are those who rea

The cost of a call and the cost of a put are almost directly related. If you have a $40 stock, a $40 call and a $40 put will be almost exactly the same price most of the time. If there is a difference, the possibility of an arbitrage usually exists meaning that there is a 0 risk strategy (minus commissions) to get something for nothing. This is true whether it's a collar or another strategy. I don't completely understand the full process that allows for that to happen, but a complex series of tr