MM70 - Adjusting Collars

This is going to be a record-quick Market Minute, but it is an important one, and I wanted to put it on video so you have it. This is not financial advice. I am not a trading advisor and I am not a CPA. I want to show you one thing you really need to learn about collars, and I am going to use my initial collar on SpaceX as the example.

Here is the mindset first. I do not have a crystal ball, and I am never going to be perfect with my entries. But you know what I can be very good at? Adjusting and maneuvering when necessary. On SpaceX, you all know I own stock and I have modified synthetic longs. We just had a nice bounce. I honestly do not know if we roll over tomorrow and head back down, or if we keep forging ahead. I know there are a lot of unlocks coming in the future. What used to be old support is now new resistance, which is exactly where the stock stopped today.

Now to the collar itself. My initial collar was selling the December 200 call and buying the 90 put. You already saw me roll my 90 put up to 100, I posted about it earlier. The reason I am walking through this is simple. A collar is not something you set once and forget. It is a living position, and I have multiple levers I can pull to adjust it as the stock moves.

So let me show you the first lever, the one that is all about protecting yourself when you have gains you want to defend.