Collar Strategy

acoustic blues mariachi, acoustic chicago blues cape verdean

Listen on 93

Lyrics

[Verse 1]
Sarah owns her Tesla stock but worries 'bout a crash
Wants protection from decline yet needs some extra cash
She crafts a collar strategy, two moves in perfect sync
Sells a covered call above, buys a put below the brink

[Chorus]
Collar wraps around your holdings like a gentle squeeze
Covered call brings premium while protective put brings peace
Cap the gains but floor the loss, income meets defense
Collar strategy balances your stock experience

[Verse 2]
First she writes a call option at one-twenty strike today
Collects that sweet premium while her shares still in play
If Tesla rockets past that price, she'll have to let them go
But keeps the premium earned plus profits down below

[Chorus]
Collar wraps around your holdings like a gentle squeeze
Covered call brings premium while protective put brings peace
Cap the gains but floor the loss, income meets defense
Collar strategy balances your stock experience

[Verse 3]
Next she buys protective puts at ninety-dollar floor
Insurance for her portfolio if Tesla starts to soar
Downward that is, not upward, puts protect when prices fall
The premium from her covered call helps pay for it all

[Bridge]
Sandwich play between two strikes
Call above and put below
Income flowing, risk contained
Collar keeps your wealth in tow

[Chorus]
Collar wraps around your holdings like a gentle squeeze
Covered call brings premium while protective put brings peace
Cap the gains but floor the loss, income meets defense
Collar strategy balances your stock experience

[Outro]
When volatility surrounds you and you need a middle way
Collar gives you boundaries where your investments safely stay
Limited upside, limited downside, premium helps you win
Collar strategy wisdom wrapped around your discipline

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