The Defensive Outlook
The VIX is currently at 16.05. This week, our Python engine scanned 19 tickers to find the best risk-managed upside with the parameters defined below.
Parameters
Expiration: 12/18/2026
Max Loss % input: 4.0%
Min Gain % input: 8.0%
Max Breakeven % input: 4.0%
Featured Collar of the Week
Ticker: AAOI (Applied Optoelectronics Inc)
The Play:
Buy 100 shares at $185.67
Buy one $185 Strike Put for $69.17
Sell one $220 Strike Call for $63.70
The Math: Max Gain: 15.54% | Max Loss: 3.31% | Breakeven: 2.95%
Percentages shown are for the duration of the collar position, not annualized percentages
Additional Collars
Ticker | Stock Price | Put Strike | Put Cost | Call Strike | Call Credit | Max Loss % | Max Gain % | Break even % |
|---|---|---|---|---|---|---|---|---|
NOK | 16.25 | 16 | 3.71 | 19 | 3.34 | 3.85 | 14.62 | 2.31 |
MU | 1035.5 | 1010 | 247.62 | 1190 | 232.85 | 3.89 | 13.49 | 1.43 |
SMCI | 46.88 | 47 | 11.61 | 55 | 9.79 | 3.64 | 13.43 | 3.89 |
ARM | 408.85 | 400 | 107.4 | 470 | 100.83 | 3.77 | 13.35 | 1.61 |
SNDK | 1761.43 | 1750 | 503.35 | 2050 | 448.55 | 3.76 | 13.27 | 3.11 |
MSTR | 149.78 | 150 | 32.5 | 175 | 26.94 | 3.57 | 13.12 | 3.71 |
META | 600.47 | 600 | 64.22 | 700 | 41.33 | 3.89 | 12.76 | 3.81 |
NVTS | 24.86 | 24 | 8.07 | 28 | 8.06 | 3.51 | 12.58 | 0.05 |
The Disclaimer
1. Not Investment Advice The Collar Code is a provider of automated financial data and analysis. All content provided in this newsletter, including but not limited to trade scans, ticker data, and option strikes, is for informational and educational purposes only. It does not constitute individual investment, legal, tax, or accounting advice. I am not a registered investment advisor (RIA) or broker-dealer.
2. Risk of Loss Trading stocks and options involves a high degree of risk and is not suitable for all investors. You may lose some or all of your initial investment. The "Collar" strategy, while designed to limit downside, does not eliminate risk. Past performance of any strategy or ticker is not indicative of future results.
3. Data Accuracy & "As-Is" Warning The data provided in our scans is generated by a proprietary Python script using third-party market data (e.g., Yahoo Finance). While we strive for accuracy, market data can be delayed, incomplete, or contain errors. All information is provided on an "as-is" basis without any express or implied warranties. We assume no duty to update information after it has been published.
4. No Individual Solicitation The information in this newsletter is impersonal and not tailored to the investment needs of any specific individual. Nothing herein constitutes a recommendation or a solicitation to buy, sell, or hold any security or to follow any specific investment strategy.
5. Personal Responsibility You are solely responsible for your own trading decisions. Before making any investment, you should consult with a qualified financial professional to determine if a strategy is appropriate for your specific financial situation and risk tolerance.
