A method used by investors to reduce the downside risk of a stock position. It is created by buying an equity put option with a strike price below the price of the equity and at the same time, selling an equity call option with a strike price above the equity price. Equity collars are intended to protect profits and not to increase equity's returns.
Related information about equity collar:
- CBOE - Equity Option Strategies - Equity Collar
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- Putting Collars To Work
 Dec 3, 2008 ... An equity collar is created by selling an equal number of call options and buying   the same number of put options on a long stock position.
 
- What is equity collar? definition and meaning
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- Managing Risk Using Options: Equity Collars and Cash-Secured ...
 Oct 24, 2012 ... Equity collar: long stock, long puts and short calls, in equal quantity. A collar is a   risk management strategy that essentially combines a covered ...
 
- Equity collar - Financial Dictionary - The Free Dictionary
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- Monetizing Equity Collar - The Bank of New York Mellon - BNY Mellon
 A Monetizing Equity Collar is a structure combining an equity collar with a loan.   This structure hedges a significant portion of the downside risk of a stock, while ...