A Collar Advance lets you access cash from your concentrated stock position without selling your shares. It combines two components: a protective collar strategy that limits your downside risk while preserving upside potential, and a cash advance that provides immediate liquidity.
Here's how it works. You pledge your shares as collateral, and in return you receive a cash advance, often 70-80% of your position's value. The collar structure uses options to protect you from losses below a chosen floor (typically 80% of your stock's current value) while allowing you to participate in gains up to a predetermined cap (for example, 145% of your starting value). You access liquidity today while maintaining meaningful exposure to your stock's performance.