https://www.optionsplaybook.com/option-strategies/collar-option/ https://www.optionsplaybook.com/option-strategies/collar-opt... Basically, you sell a call opt

https://www.optionsplaybook.com/option-strategies/collar-option/ https://www.optionsplaybook.com/option-strategies/collar-opt... Basically, you sell a call option, and use the proceeds to buy a protective put option. You can buy a protective put directly, but that costs money. This helps offset the cost buy selling a call. You can play with the strike prices of each to get more/less insurance depending on your risk tolerance. For example, you might sell a call 5% above current prices (expiring in a year), buy a put for 10% below prices (expiring in a year), and pocket the difference.