A collar strategy is used as the one of the ways to hedge against possible losses, a hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion what?
Collar (finance) In finance, a collar is an option strategy that limits the range of possible positive or negative returns on an underlying to a specific range. A collar strategy is used as the one of the ways to hedge against possible losses and it represents long put options financed with short call options.
Fence (finance) Fence (also known as a Dutch Rudder) is an investment strategy that uses options to limit the range of possible returns on a financial instrument.