Today I'm a guest contributor at Jim Wang's very popular and well written personal finance blog, Bargaineering. Jim's work has been cited in the NY Times and Business Week.
The vast majority of passive investors are just that – passive. The idea of combining option strategies with a passive investing approach may seem to be a contradiction in terms, but I believe the idea has merit.
All investors can benefit by owning stock market investments that are protected against large losses. In other words – investments that are insured. Collars are appropriate for passive as well as active investors.