# Collar

*Derivatives & Options — Finicade finance glossary*

Protecting a stock holding by buying a put and selling a call to help pay for it — capping both your downside and your upside. Cheap insurance, at the cost of giving up big gains.

**Related terms:** [Protective Put](https://finicade.com/glossary/protective-put), [Covered Call](https://finicade.com/glossary/covered-call), [Hedging](https://finicade.com/glossary/hedging)

Source: https://finicade.com/glossary/collar