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A collar strategy setup is similar to a covered strangle, but instead of selling a put, you are purchasing a put. The setup involves a owning stock, a protective put, and selling a call. It is simply a covered call, with purchasing a put. This is generally a neutral strategy. This strategy can be implemented with zero cost, if you sell the call for the same price you purchase the put. This strategy can be good with you are bullish, but feel like it could be good time to sell and also cap your downside loss.