Sharing my learnings - learnt about 'collar' trade, applied to my biggest winners. Saved me lot of pain (and gains).

I learnt last year about how Mark Cuban saved his fortune during dot com bubble burst with a collar options trade (for the stocks he got when he sold his company).

Mid last year, a lot of stocks from my portfolio such as Affirm, QS, Sofi, etc were doing very well. They were at their respective ATH. Getting out that point would have got good gains but all would have added to overall tax (including some STCG). And nobody knew if these stocks were going to make further ATH. So apart from potential higher taxes, the FOMO on new ATH in each of these bigger winners was as real as it could get in an exuberant market. But then, what if market reverses the direction from here ?

The collar trade addressed most of those feelings and concerns - gave that chance to wait and see if new ATH are achieved while also protecting from the downside. Cost was just a little premium (collar results in less net premium than just buying a put as you sell a CC - and if you choose different months for the put and calls, the cost could be 0 or even positive).

Eg. QS reached highs n late 2025. And now it is back to \~8 (down 50% than the highs). But a collar position with expiry in 2026, I paid just a little premium - allowed me to wait to see if I can sell my position even at higher prices. And gave me right to sell at \~16 even if stock goes down - which turned out the case. Now even when it is at \~8, I shall be able to sell at \~$16.

I can reenter and then DCA some of these names again if the market keeps deteriorating.

I wish, I had known this in 2021/22 when we had such peaks and then big drops.

Sharing as it has helped me. See if it helps you in the future. This is not an advice. DYOR. Good luck!