a collar used to restrain or identify a dog. Informal. a close-fitting necklace, as a wide band covered with or composed of precious or semiprecious stones; choker. Slang. a collar of the type worn by some clergymen, priests, etc., having the opening at the back; clerical collar
1. What is a collar used for?
A collar, commonly known as a hedge wrapper, is an options strategy implemented to protect against large losses, but it also limits large gains. The protective collar strategy involves two strategies known as a protective put and covered call.
2. Why is a collar called a collar?
The Oxford English Dictionary traces collar in its modern meaning to c. 1300, when collars served as neck-protecting armour.