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Topical Terminology > Zero Gain Collar



1 Definition

Zero Gain Collar

For Zero Gain Collar we have a term and definition in Derivatives.



Zero Gain Collar (Derivatives)

A Costless Collar (q.v.) consisting of a short Call (q.v.) and long Put (q.v.), where the short Call's strike is ATM (q.v.). Hence, when owned in combination with a long position in the underlying, the Zero Gain Collar gives up all the underlying's upside gain, and the combined position can never show a profit.




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