Trading a Collar option or Three way
How to trade Collar option and three way Product : Soybean meal
Adminlaurie
(Admin, CQG)
shared this idea
-
Adminlaurie
(Admin, CQG)
commented
A Collar option strategy is Long the future, short an out of the money call and long an out of the money put.
Oct Soy Meal example
Long ZME 308
Short 315 call
Long 305 putA three way strategy is long a put spread and short a call
Oct Soy Meal example
Long 310 put
Short 305 put
Short 315 callTrading and investment carry a high level of risk, and CQG, Inc. does not make any recommendations for buying or selling any financial instruments. We offer educational information on ways to use our sophisticated CQG trading tools, but it is up to our customers and other readers to make their own trading and investment decisions or to consult with a registered investment adviser.
CQG UDS does not support doing option collar strategies as the functionality does not allow a future contract with options.
To do a 3 way the options would be entered as a Custom strategy in the Option Strategy window as shown below and after pressing the Trade Button and the strategy appears in the DOM window if you have Notifications turned on and click on the Buy side of the DOM the Notification window will appear and show the legs of the strategy and the Buy and Sell of the legs as shown in the below example.The opinions expressed here are solely those of the author and do not reflect the opinions of CQG, Inc. or its affiliates.