Thanks
COLLAR has 2 components.
SELL CALL -Get revenue
BUY PUT -it cost you
So in my example it works in my favor.
Buy PUT - $7
Sell Call - $2 (revenue)
Net Cost is $5
So PUT cost me $7.
In Put writing/selling there are 2 types of PUTS, Married PUT (Buy stock and Buy PUT at same time) and Just Buying protective PUT (which is my case).
Since I am achieving Long term tax gain via PUT (stock holding is long term but PUT I bought only 1 month ago). I don't think all of gain will be long term gain. I don't know answer. IRS is not business of handing over money.
Sale Price via PUT = $155 (at the time of PUT exercise stock closing Price was $140)
Cost Stock =$50
Cost Put = $7
Net = $155- $50-$7 = $98
