3 ms·

Could this just be a collar (sell calls to buy puts)?

• dh2022 1y ago
  If the calls are not covered this is a very bearish position: if the market rises he will lose money on the puts and will have to buy the stock at the higher price (to cover the calls). It is easy to go bankrupt with this position. I would not do this unless I have some type of information that the stock will decline with certainty.