Well, remember what a collar is: a combination of a covered call and a
protective put. Then remember what a covered call is: buying one share
of a stock and selling one call option simultaneously. If you use a
ratio instead to decide how many shares to buy versus how many calls to
sell, that will determine both the risk and the reward of the strategy.

On Sat, 2010-03-20 at 21:44 -0800, Megh wrote:

> My query is not directly R related rather on finance. Hopefully folks here
> would give some solution. I would like to ask what is the "Ratio collar
> option". I know about the Collar option and if I search over net on Ratio
> collar option all the time it refers to Collar option only. Are they both
> same? Why the term "Ratio" there?
> 
> Any view will be highly appreciated.
> 
> Thanks,



	[[alternative HTML version deleted]]

