In today’s market, managing risk is just as important as finding returns. One of the most overlooked — yet incredibly effective — strategies to do just this is the options collar.
If you’ve never used a collar before, here’s the quick version:
A collar is when you own 100 shares of a stock, buy a put option to protect your downside, and sell a call option to offset the cost.
It’s a favorite among veteran investors looking to limit risk without sacrificing all of their upside potential. And right now, with stocks like Google (GOOG) (GOOGL) showing strong upside potential — collars are making a big comeback.
Limits downside without fully capping gains
Generates income through the call option
Makes high-growth names safer to hold during volatility
This strategy was recently broken down in full by columnist Rob Isbitts in this popular Barchart article, where he walks step-by-step through how to build the perfect collar trade using Barchart’s screeners and filters.
Plus, our own Reynolde Jordan created a quick video breakdown that quickly explains how this strategy works — and how you can find your own collar trade setups on Barchart using Rob’s exact steps.
Watch the reel on Instagram, or click below to watch on YouTube:
Collars aren’t just for pros — they’re a powerful, repeatable options strategy for everyday investors looking to trade smarter. And with tools like Flipcharts, Watchlists, and Chart Templates, Barchart makes it simple to find and track your trades.
Ready to get started? Try Barchart’s Options Screener to find your best collar trade >>
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
