Long stock positions can be capital intensive and also provide no downside protection should the stock price fall. Previously, tastytrade demonstrated that by adding a Long Put option and a Short Call option (known as a Collar Strategy) can improve your cost basis and also help your position in the event of a sell off. However, what if collared stock positions are STILL too expensive? Join Tom Sosnoff, Tony Battista and JJ Kinahan as they share a replacement strategy for the Collar by using Vertical options spreads instead! With the use of a Long Call Vertical Spread vs. Stock, The margin requirement decreases significantly while keeping your probability of profit high!
The Case for Long Call Vertical Spread Options Instead of Stocks
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