The Collar (or Protected Buy-Write)
The Collar is designed to produce an extremely low risk strategy where, in certain cases, the trader can even enjoy a virtually riskless trade. It may sound too good to be true, but it is possible—although I recommend that you enter in two separate orders for buying the stock and trading the calls and puts. Floor traders do not like the idea of you successfully executing a trade like this, even if the potential returns aren’t spectacular.
 The risk-free position generally only applies to the position at expiration.
For the strategy to work in this way, it needs to be a long-term strategy, with the options expiring at least one year out, that is, Long-term Equity AnticiPation Securities (LEAPs®). LEAPs ...