[kol-er] 
| 1. | the part of a shirt, coat, dress, blouse, etc., that encompasses the neckline of the garment and is sewn permanently to it, often so as to fold or roll over. |
| 2. | a similar but separate, detachable article of clothing worn around the neck or at the neckline of a garment. Compare clerical collar. |
| 3. | anything worn or placed around the neck. |
| 4. | a leather or metal band or a chain, fastened around the neck of an animal, used esp. as a means of restraint or identification. |
| 5. | the part of the harness that fits across the withers and over the shoulders of a draft animal, designed to distribute the pressure of the load drawn. |
| 6. | an ornamental necklace worn as insignia of an order of knighthood. |
| 7. | a narrow strip of leather or other material stitched around the top of a shoe as reinforcement or trimming. |
| 8. | Zoology. any of various collarlike markings or structures around the neck; torque. |
| 9. | Metallurgy.
|
| 10. | Machinery. a short ring formed on or fastened over a rod or shaft as a locating or holding part. |
| 11. | (in iron or steel construction) a rigid frame for maintaining the form of an opening. |
| 12. | the upper rim of a borehole, shot hole, or mine shaft. |
| 13. | Also called bracelet. a narrow horizontal molding encircling the top or bottom of a furniture leg. |
| 14. | Glassmaking. merese. |
| 15. | Informal.
|
| 16. | to put a collar on; furnish with a collar: They finally succeeded in collaring the unwilling dog. |
| 17. | to seize by the collar or neck: We collared the little fellow and brought him, struggling all the while, into the house. |
| 18. | to detain (someone anxious to leave) in conversation: The reporters collared the witness for an hour. |
| 19. | to lay hold of, seize, or take. |
| 20. | Informal. to place under arrest. |
| 21. | to roll up and bind (meat, fish, etc.) for cooking. |
| 22. | Metalworking. (of a piece being rolled) to wrap itself around a roller. |
| 23. | hot under the collar, Informal. angry; excited; upset. |
[mey-reez, -rees] | (on a stemmed glass) a flat, sharp-edged knop joining the stem to the bowl or foot. |
| col·lar (kŏl'ər) n.
[Middle English coler, from Old French colier, from Latin collāre, from collum, neck; see kwel-1 in Indo-European roots.] col'lared adj. |
collar
|
Collar
1. A protective options strategy that is implemented after a long position in a stock has experienced substantial gains. It is created by purchasing an out of the money put option while simultaneously writing an out of the money call option.
2. A general restriction on market activities.
Investopedia Commentary
1. The purchase of an out-of-the money put option is what protects the underlying shares from a large downward move and locks in the profit. The price paid to buy the puts is lowered by amount of premium that is collect by selling the out of the money call. The ultimate goal of this position is that the underlying stock continues to rise until the written strike is reached.
2. An example is a circuit breaker which is meant to prevent extreme losses (or gains) once an index reaches a certain level.
Collars can protect you against massive losses, but they also prevent massive gains.
Related Links
Come One, Come All - Covered Calls
Married Puts: A Protective Relationship
See also: Ceiling, Circuit Breaker, Covered Call, Floor, Married Put, Out of the Money, Strike Price, Trading Curb, Trading Halt
collar
In options, buying a put and selling short a call so as to limit the potential profit and loss from an investment position.
The level at which an index triggers a circuit breaker to temporarily stop trading.
In an acquisition, an upper and lower limit that will be paid for shares of the company to be acquired.
In a new issue, a limit on the price or interest rate that is acceptable. See also zero-cost collar.
Case Study In December 2000 PepsiCo, Inc., announced it would acquire Quaker Oats Co. for $13.4 billion in PepsiCo stock. The elusive deal was sealed after Quaker spurned an earlier PepsiCo offer and a more recent offer from Coca-Cola had been withdrawn. Both soft drink giants were after Quaker's noncarbonated beverages, including Gatorade. The deal specified that PepsiCo would offer 2.3 shares of its stock for each share of Quaker. At a then-current PepsiCo stock price of $42.38, the Quaker shares were each valued at $97.46. The agreement also provided a minimum and maximum value, or collar, for the Quaker stock. PepsiCo guaranteed a minimum price of $92 per Quaker share in the event PepsiCo stock fell below $40 for ten random days during the month prior to closing. Likewise, PepsiCo would be required to pay no more than $105 per Quaker share in the event PepsiCo stock increased to more than $45.65. The collar of $92 to $105 provided a maximum and minimum value that Quaker stockholders would receive for each of their shares. The earlier PepsiCo offer specified the same 2.3-to-1 exchange rate but had been rejected by Quaker because PepsiCo was unwilling to include a collar as part of the offer. In other words, PepsiCo refused to guarantee a minimum price for the Quaker stock it wanted to acquire. |
Collar
(Heb. peh), means in Job 30:18 the mouth or opening of the garment that closes round the neck in the same way as a tunic (Ex. 39:23). The "collars" (Heb. netiphoth) among the spoils of the Midianites (Judg. 8:26; R.V., "pendants") were ear-drops. The same Hebrew word is rendered "chains" in Isa. 3:19.
ər
