A collar option strategy limits both losses and gains. The position is created with the underlying stock, a protective put, and a covered call.

A collar position is created by buying (or owning) stock and by simultaneously buying protective puts and selling covered calls on a share-for-share basis.

A collar strategy is a multi-leg options strategy that combines a long stock position, an out-of-the-money covered call, and an out-of-the-money protective put.

28 дек. 2022 г. · A collar is an options strategy active stock and options traders often use, but the way the strategy is implemented can vary from one investor ...

The collar options strategy is an advanced options strategy used by investors and traders to manage risk - often in concentrated stock positions.

17 окт. 2023 г. · Collar is an option strategy used by investors and traders to reduce portfolio volatility through a combination selling and buying of ...

A collar option is a strategy where you buy a protective put and sell a covered call with the stock price generally in between the two strike prices.

This strategy combines two other hedging strategies: protective puts and covered call writing. Usually, the investor will select a call strike above and a long ...

The Bottom Line. A protective collar can be a good strategy for gaining downside protection in a more cost-effective way than merely buying a protective put.