Collar option strategy explained in Urdu

Описание: DISCLAIMER: -
This video goal is to only give you knowledge about how to use options it does not made to ENCOURAGE YOU TO DO AS THE VIDEO SAYS that is your own choice this video is just for the purpose of knowledge and do not advice or suggest anything.
This video contains the detailed information about the option strategy knowns as collar option or protective call or buying put by selling a call option. Collar or protective collar is the strategy suitable for those who owns some stocks and have made huge capital gains on it but now thinking that these capital gains will convert into losses as the market movie downside. Trader is in long position on the stock but expecting the prices to fall and do not want to sell the stock but wants to hold and hedge. So, this hedging can be done using collar options. In this a trader sell a call option out the money (Strike greater than spot) and use the call premium to finance the purchase of out the money put option (Strike lower than spot spot) both the options are of same stock and expiry. This way the trader can protect his gains from downside movement, but it comes with the cost of upside potential. As the trader sells the call option it gives the other person a right to purchase trader’s stock at strike price and trader is obligated to sell And as the trader purchased put option it gives the trader right to sell at strike.