Wheel3 legsmixedbullish to neutral

Own shares, sell a call above and buy a put below. A covered call with a floor bolted on — both ends of the outcome fixed in advance.

The Strategy Builder does not construct this one — the reference shelf is broader than the picker. You can still build it by hand: add the legs below in the builder's leg table.

A collar is a covered call plus a protective put. The call caps the upside and pays for the put; the put defines the floor.

The result is a position whose best and worst cases are both known at entry. On the example the outcome is bounded between roughly −$5.30 and +$3.70 per share, whatever the stock does.

It is the natural structure for a holding you want to keep but not be exposed to — after an assignment, around an event, or into a period you have no view on.

Priced off the guide's shared chain, on a $50 stock. Every figure beneath the diagram is computed from these legs by the same engine the Strategy Builder uses.

Flat at maximum profit above the call strike, flat at maximum loss below the put strike, sloping between them.

One break-even, at the share basis adjusted by the net cost of the two options.

The shape is identical to a bull call spread's — which is what a collar synthetically is, with the shares standing in for the long call.

The call premium funding the put is the whole appeal. A zero-cost collar is one where the two exactly offset, and finding that pair is the usual way the strikes get chosen.

Compared with a plain covered call, the collar gives up some credit to remove the tail. Compared with holding the shares outright, it gives up the upside above the call.

Because both ends are capped, this reduces the position to a range bet on a name you already own — which is a very different exposure from a wheel, even though it starts from the same shares.

Like everything in this guide, these are descriptions of structures and conditions — context for your own decisions, not instructions to trade.