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

• Position Summary: Current PMCC structure (long calls, short calls)

• PMCC Health Check: Is structure proper (short > long strike) or broken?

• Earnings Risk: Next earnings date and days until event

• Put Duration Analysis: Comparison of short vs medium vs long-dated puts

• Collar Scenarios: Gap up, flat, gap down outcomes with each put duration

• Cost/Benefit Analysis: Insurance cost vs protection value

• Implementation Timeline: Step-by-step checklist with dates

• 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