Collar strikes on a concentrated position, with constructive-sale review
One command in the UHNW pack, available in the CLI, as an MCP tool and as a JavaScript import: uhnw collar.
What it needs, and why
Every input is checked before anything is calculated. symbol and basis are required; the rest refine the answer.
| Input | Required | The question it asks | Why it matters |
|---|---|---|---|
symbol | yes | Which position, how many shares, and at what price? | Strikes are a percentage of the share price. |
basis | yes | What is the cost basis per share? | It determines the embedded gain the hedge is protecting. |
premiums | optional | What are the current put and call premiums per share? | Without live quotes the net cost of the collar is unknown. |
Requests it answers
- “hedge this concentrated stock”
- “build a collar”
- “protect this position without selling”
An agent with this pack loaded picks the command from phrasing like that, asks for whatever input is missing, and reports the figures with the method that produced them.
Run it
node bin/wealth-skills.js uhnw collar --symbol AAPL --shares 100000 --price 215 --basis 25Limits it inherits from wealth-uhnw
- The engine does not price options. Whether a collar is zero-cost is unknown (
null) until you supply live put and call premiums. - Every collar needs tax counsel review for constructive-sale treatment under IRC §1259. No rule defines a safe band; spreads under roughly 15–20% of the share price are a common practitioner warning sign and are flagged as
narrowBand.
The full pack, its other 2 commands and what it deliberately leaves alone are on the UHNW page.