Investors all choked up over collars [Archive.org URL]

One of the most popular ways to gauge a company’s health is to mind what corporate insiders are doing. If they’re jumping ship or dumping shares, there’s good reason to worry. But it’s not as easy to track insider bearishness as you might think, thanks to a hedging tactic called the zero-cost collar, a tool that’s saved insiders a boatload of cash while individual investors lick their wounds.

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