What do you get when you take the option collar, the options strategy I write about regularly for Barchart, and remove the covered call, arguably the least important yet most popular piece? The answer is a “married put strategy.” And in this article, I’m going to explain why this is a good time to leave the covered call at home.
In the current market environment, the exchange-traded fund (ETF) I’m focusing on might be better off without the covered call. Why? Sinking option volatility. That makes options cheaper. But since the put side of a collar is bought, cheap is good.
