Zero Cost Collar

Zero Cost Collar

An investment strategy in which one buys or sells one position while taking an opposite position for the same price that will limit both the return and the risk of one's investment. An investor sells a position that caps return while buying one that limits loss, while a borrower does the opposite. A zero-cost collar may be used for options, stocks, interest rates, or commodities. See also: Collar.
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63 per pound with periods of maturity to September 2018, zero cost collar unmargined sales contracts for 120,000 tonnes at a spread of $2.
The company will enter into a fence structure - zero cost collar - for around 300,000 gold ounces, representing around 20% of Burnstone's production during the loan term, with lenders to provide a cost effective hedging structure required by the facilities.
An example of a commonly used hedging/monetization strategy involves a taxpayer borrowing against the value of shares currently owned, and entering into a zero cost collar with respect to such shares.
On September 19, 2008 we terminated a zero cost collar for oil volumes of 1,000 barrels per day for the full year 2011.
The reference price for the zero cost collar is NYMEX West Texas Intermediate crude oil.
NASDAQ:CLDN) announced today that Stephen Russell, the Company's Chairman and Chief Executive Officer, has entered into a zero cost collar transaction involving about 22% of his shares.
Because of my desire to retain my Celadon shares and continue to have a meaningful upside opportunity, a zero cost collar was identified as a logical choice.
In the first agreement, the Company entered into a zero cost collar related to 5,000 MMcf of gas per day with a floor price of $4.
Goehring, senior vice president and chief financial officer, added: "In late May the company entered into a one-year zero cost collar hedge contract on 3,000 barrels of oil per day (BOPD).
The zero cost collar model allows users to compute the call strike for which the call premium offsets the put premium.
We recently increased our hedge position, primarily using zero cost collars in this period of high commodity prices, in order to establish an economic base for our future operations and to be able to participate in higher prices if that should occur.
For option strategy trades, users can input a desired net premium and solve for one of the strikes, making pricing certain financial instruments such as zero cost collars much easier.