Close Between Strikes

XYX is trading between $40 and $55 at expiration

If the price of XYX is anywhere between $40 and $55 at expiration, both the put and call options will be out-of-the-money and will expire worthless. The investor will keep the XYX shares, and the only cost will have been that of establishing the collar, $0.25 per share in this example. During this period, the investor will have retained ownership of the shares, with the ability to vote and to receive dividends, if either applied.

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