What is Collar?
Collar — An options hedge on a stock you own — buy a protective put and sell a call to fund it, capping both downside and upside.
In simple terms
A collar protects gains cheaply by giving up some upside.
Why Collar matters when you invest
Understanding collar helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Collar — frequently asked questions
What is Collar?
An options hedge on a stock you own — buy a protective put and sell a call to fund it, capping both downside and upside.
What does Collar mean in the stock market?
An options hedge on a stock you own — buy a protective put and sell a call to fund it, capping both downside and upside. A collar protects gains cheaply by giving up some upside.
Can you give an example of Collar?
A collar protects gains cheaply by giving up some upside.
Put it into practice — open a free account.
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