Collar

Protective Put vs Collar: Which Hedge Fits Your Portfolio? Both a protective put and a collar are ways to hedge stock you already own against a decline. The question that separates them is simple: are you willing to give up some upside to lower (or eliminate) the cost of that hedge? A protective put says no — you pay full price for pure downside protection and keep all your upside. A collar says yes — you sell away some upside to help pay for the same protection. ...

Options Trading 101: The Collar Strategy Explained Ever feel like your stock portfolio is a rollercoaster ride? One day you’re up, the next day you’re down, and you’re just trying to hold on for dear life. Enter the Collar strategy. It’s like putting a seatbelt on your investments—you’re still in the ride, but you’ve got some protection if things go south. Let’s break it down and see how it works. ...