Sooo I had planned to make this inaugural #tradingtuesday post about my latest trading strategy, a collar. The universe had other plans.
I have been making a weekly covered call trade for over a year now and I always set it up on Tuesdays. It took 
And this week seemed like the perfect opportunity because I was planning on adding a 3rd element to my trade, a put, which would make it a “collar”. I even called my brokerage to make sure I understood how to make a “three legged trade” that included buying the stock (the foundation), selling the call (the premium or profit in my case), and buying the put (the insurance), all in one go.
Well, it didn’t work out that way. There was no clear path to a three legged trade that I could see so I just bought the stock (LUNR) and then tried to do the collar as a two legged trade. But, alas, the platform wanted to set the strike price of my put to be the same as my call and that was just too darned expensive! My final attempt was to do everything a la carte: buy the stock, sell the call, and then buy the put. And then I found out how expensive the puts were, even at a low low strike price.
So, here I am with my usual call contract waiting to see how the LUNR price moves between now and Friday (the call contract expiration date), ready to buy a put contract or buy the call contract back on Friday if things look like they’re headed south. Tune in next Trading Tuesday to find out if our hero survived the cliff hanger!