How is a structured collar different from an ordinary collar? I failed to find information about the difference online.
Let's start with a definition:
A Collar is a protective strategy for a position in the underlying instrument created by purchasing a put and selling a call to partially pay for the put option purchased or vice versa.
Based on that definition, there are two different types of collars. Each is a combination of two simpler strategies:
- Covered Call + Long Put
- Married Put + Short Call