Buy Put Sell Call Strategy -

: You have significant gains in a stock and want to protect them through a period of high uncertainty (like an earnings report) without selling your shares. 2. Synthetic Long Stock (The "Leverage" Strategy)

This is most common for investors who already own a stock and want to protect against a crash without paying a high premium for insurance. : Own the underlying stock (e.g., 100 shares). buy put sell call strategy

Before executing these strategies, you can use tools like the Options Profit Calculator to visualize your break-even points and potential risk. What Is A Collar Position? - Fidelity Investments : You have significant gains in a stock