A collar strategy is an options trading strategy that involves holding a long position in an underlying asset while simultaneously buying a protective put option and selling a covered call option.

A collar options strategy protects stock holdings from significant losses while limiting potential gains. Investors create a collar by owning shares of a stock. They then purchase a put option below ...

The Dog Collar strategy uses put and call options to limit downside and define risk on beaten-down large-cap stocks showing signs of bottoming. I currently favor applying collars to Microsoft, UPS, ...