The core advantages over selling come down to tax efficiency, continued participation, and flexibility:
Tax Efficiency: Selling can trigger immediate capital gains tax of 23.8-38%, reducing the capital available to you. A Collar Advance defers that tax liability.
Continued Upside: You participate in gains up to the cap, which can be valuable if you believe in your stock's long-term prospects.
Flexibility at Maturity: You can receive shares back, deliver shares, or potentially roll forward. Selling is permanent.
Maintaining Exposure: For investors who are still constructive on their stock, a Collar Advance lets you access liquidity without fully exiting your position.