Ib Collar

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

Step 1: Gather Data

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

The script returns JSON to stdout with all position and scenario data.

Step 2: Format Report

Read templates/markdown-template.md for formatting instructions. Generate a markdown report from the JSON data and save to sandbox/.

Step 3: Report Results

Present key findings to the user: recommended put protection, cost/benefit, and the saved report path.

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)

JSON Output

The script returns JSON with these key fields:

• symbol, current_price - Basic info
• long_strike, long_expiry, long_qty, long_cost - LEAPS position
• short_positions - List of short calls
• is_proper_pmcc, short_above_long - PMCC health flags
• earnings_date, days_to_earnings - Earnings timing
• put_analysis - List of put scenarios with costs and P&L under gap up/flat/down
• unprotected_loss_10, unprotected_loss_15, unprotected_gain_10 - LEAPS risk without collar
• volatility - Historical volatility data

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

# 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