Category: Collar

Understanding Collars in Stock Trading: Mitigating Risks with Options Strategies

In the world of stock trading, investors often find themselves balancing the desire for potential gains with the need to protect against losses. One popular strategy employed by traders to achieve this balance is known as a “collar.” A collar is a combination of options contracts used to limit the potential losses and gains on […]

A Beginner’s Guide To Stock Collar Options Trading

A collar option strategy is an options strategy that involves buying stock, stock futures, or options to create a position that has downside protection and the potential for profit if the price of the underlying asset rises. A stock collar strategy is a combination of covered call and long put options designed to limit losses […]