NEUTRAL / PROTECTION Strategy
Zero-Cost Collar
Live Zero-Cost Collar Setup for BBU
What is a Zero-Cost Collar?
A Collar is used to protect a long stock position. You sell an OTM call to fund the purchase of an OTM protective put.
When to Use It
Essential for protecting profits before major events like earnings or macro announcements.
Advantages
Protects against a major crash
Often costs $0 out of pocket
Sleep better at night
Disadvantages
You give up upside above the short call strike
May trigger tax events if assigned
Pro Tip
Great for holding core positions (like GLD or NVDA) during high-uncertainty periods.
Never miss a prime BBU setup
Join 15,000+ traders getting real-time Zero-Cost Collar signals and institutional gamma wall alerts.
Get Free AlertsTradingView Pine Script
Visualize the Zero-Cost Collar levels directly on your TradingView chart with this custom indicator snippet.
//@version=5
indicator("Collar Protection Zones", overlay=true)
// Inputs
protective_put = input.float(95.0, "Protective Put Strike")
covered_call = input.float(110.0, "Covered Call Strike")
// Drawing
plot(protective_put, "Floor (Put)", color.green, 2, plot.style_linebr)
plot(covered_call, "Cap (Call)", color.red, 2, plot.style_linebr)
// Logic
fill(plot(protective_put), plot(covered_call), color.new(color.blue, 90), "Protected Zone")
How to use: Open the "Pine Editor" at the bottom of your TradingView chart, paste this code, and click "Add to Chart".