标题: Payoff of bull spread vs zero cost collar [打印本页] 作者: cfalevel2011 时间: 2011-7-11 19:14 标题: Payoff of bull spread vs zero cost collar
They are the same right?作者: dyga 时间: 2011-7-11 19:14
generally speaking, not. Do you mean "bull call spread"?作者: ll11 时间: 2011-7-11 19:14
Collar .... "unlimited" downside and upside
Spread ... limited upside and downside作者: Darien 时间: 2011-7-11 19:14
I think the difference is in when you would use them.
Bull spread, you think the stock is going to go up, but not that much (not above high call strike). The sold high call subsidizes the purchased low call.
Collar you just want to be protected from a drastic rise or fall of the stock, and want to buy 1 and sell the other to pay for it, giving up the upside.作者: cityboy 时间: 2011-7-11 19:14
Yes it will be the same.作者: zwjy 时间: 2011-7-11 19:14
And for collar, we also own the underlying stock while for bull call spread, we only have the 2 calls (1 long 1 short), isn't it?作者: oneboy 时间: 2011-7-11 19:14
st_laurent Wrote:
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> And for collar, we also own the underlying stock
> while for bull call spread, we only have the 2
> calls (1 long 1 short), isn't it?
Yes for collar we own the underlying stock, we short a call and long a put.
For bull call spread we long 1 call and short another call.作者: bboo 时间: 2011-7-11 19:14
they are the same. no difference作者: mcmc 时间: 2011-7-11 19:14
The payoffs are the same.作者: pennyless 时间: 2011-7-11 19:14
Spreads cannot be structured as zero-cost (if amounts/notionals/number of contracts of options are equal)
