JPM Collar The JPM Collar trade refers to a JP Morgan Hedge Fund (named: JHEQX) which hedges a long equity portfolio using a large options collar trade. Each quarter this hedge fund rolls to a news options collar trade, and the resulting hedging flows can often impact the market. To enter the collar, the fund sells a 3-5% out of the money call, and use those proceeds to buy a 3-5% out of the money put spread. At the end of each quarter they allow the existing collar trade to expire, and enter into a new collar to cover their stock exposure for the following quarter. Related articles Gamma Neutral Hedging 25D Risk Reversal What is the cost of a SpotGamma Subscription? Hight Frequency Trading (HFT) How do I interpret the Skew chart in Equity Hub™?