Collar Calculator

Search a symbol to visualize the potential profit and loss for a collar option strategy.


What is a collar?

BullishLimited ProfitLimited Loss

A strategy for when you are somewhat bullish but nervous on a stock, and own 100 of the underlying shares. It is like a covered call and protective put combined because it protects you from the stock falling past strike A, but also limits your upside by selling the stock if it hits strike B.

You can also think of it like a protective put, but the credit from the short call pays for the stop-loss insurance, with the downside of the profit being capped.

(also known as: Risk-reversal)
ABProfitLossStock Price
  • Own the underlying
  • Buy a put at strike A
  • Sell a call at strike B