Collar (Protective Collar)
Cost-effective protection strategy with limited upside.
Beginner
Market Outlook
neutral
Family
income
Capital Req
high
Risk Profile
medium
Strategy Overview
Key characteristics and when to use
Structure
Own Stock + Buy Put + Sell Call
Greek Profile
Positive delta, mixed theta, mixed vega
Characteristics
Zero-CostProtectionFoundation
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Call strike - stock price + net credit
Max Loss
Stock price - put strike + net debit
Breakeven
Stock price ± net premium