ib-collar git:20260221.baa7306A

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---
name: ib-collar
description: Generate tactical collar strategy reports for protecting PMCC positions through earnings or high-risk events. Requires TWS or IB Gateway running locally.
dependencies: ["trading-skills"]
---

# IB Tactical Collar

Generate a tactical collar strategy report for protecting PMCC positions through earnings or high-risk events.

## Prerequisites

User must have TWS or IB Gateway running locally with API enabled:
- Paper trading: port 7497
- Live trading: port 7496

## Instructions

```bash
uv run python scripts/collar.py SYMBOL [--port PORT] [--account ACCOUNT]
```

## Arguments

- `SYMBOL` - Stock symbol to analyze (must be in portfolio)
- `--port` - IB port (default: 7496 for live trading)
- `--account` - Specific account ID (optional, searches all accounts)

## Output

Generates reports saved to `sandbox/`:
- `YYYYMMDD_HHMMSS_SYMBOL_Tactical_Collar_Report.pdf` - PDF report
- `YYYYMMDD_HHMMSS_SYMBOL_Tactical_Collar_Report.md` - Markdown report

### Report Sections

1. **Position Summary**: Current PMCC structure (long calls, short calls)
2. **PMCC Health Check**: Is structure proper (short > long strike) or broken?
3. **Earnings Risk**: Next earnings date and days until event
4. **Put Duration Analysis**: Comparison of short vs medium vs long-dated puts
5. **Collar Scenarios**: Gap up, flat, gap down outcomes with each put duration
6. **Cost/Benefit Analysis**: Insurance cost vs protection value
7. **Implementation Timeline**: Step-by-step checklist with dates
8. **Recommendation**: Optimal put strike and expiration

### Key Concepts

**Proper PMCC Structure**:
- Long deep ITM LEAPS call
- Short OTM calls ABOVE long strike
- No additional margin required for collar

**Broken PMCC Structure**:
- Long call is now OTM (after crash)
- Short calls BELOW long strike require margin
- Collar still works but margin implications exist

**Tactical Collar**:
- Buy protective puts ONLY before high-risk events (earnings)
- Sell puts after event passes
- Balances income generation with crash protection

**Put Duration Trade-offs**:
- Short-dated: Cheaper, more gamma, but zero salvage on gap up
- Medium-dated (2-4 weeks): Best balance of cost, gamma, and salvage
- Long-dated: Preserves value on gap up, but expensive and less gamma

## Example Usage

```bash
# Analyze NVDA position (defaults to production port 7496)
uv run python scripts/collar.py NVDA

# Analyze specific account
uv run python scripts/collar.py AMZN --account U790497

# Use paper trading port instead
uv run python scripts/collar.py NVDA --port 7497
```