equity collar

noun

An options strategy where an investor holding a long position in equity simultaneously buys a put option and then sells a call option, creating a floor and cap on the stock's potential returns.

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Meanings

nounequity collar (plural equity collars)

plural equity collars

  1. businessAn options strategy where an investor holding a long position in equity simultaneously buys a put option and then sells a call option, creating a floor and cap on the stock's potential returns.
Cite this entry
APA

equity collar. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/equity%20collar

MLA

“equity collar.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/equity%20collar. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “equity collar,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/equity%20collar.

Source: equity collar on Wiktionary, CC BY-SA 4.0.