Tired of ‘TACO?’ Here comes the ‘Trump collar’

John L. Micek

Mon, Jun 2, 2025, 4:09 PM 1 min read

With Wall Street starting a new week on its back foot, one financial analyst, known for his colorful language, has come up with a new way to describe what’s ailing investors.

Just when you were tired of “TACO,” or “Trump Always Chickens Out,” say hello to the “Trump Collar.”

That comes courtesy of Charlie McElligott, a strategist at Nomura, according to MarketWatch.

For those of you who aren’t fluent in WallStreetese, a collar, in the option markets, is a strategy that protects against big losses, but also limits profits, according to MarketWatch.

Traders tend to use them when they’re optimistic about an asset over the long haul, but are sweating short-term volatility in the market, according to MarketWatch.

According to MarketWatch, McElligott has argued that investors should think about collars when they think about a market that’s been smacked around by Trump’s tariff rhetoric.

In other words, one that wants to move higher, but gets knocked back by incendiary Truth Social posts, MarketWatch reported.

“You all know ‘Art of the Deal’ Trump … and over the past month+, the ‘TACO’-kind … but what it all adds up to now is the de facto ‘Trump Collar,’ as the market retrains the reaction function in the ‘Human VVIX’ era,” McElligott said in an email last week.

McElligott has referred to Trump as the “Status Quo Disruptor in Chief” because of his ability to send Wall Street tumbling, MarketWatch reported.

Read the original article on MassLive.