Zero cost collar or zero cost option is an option technique to safeguard the gains obtained on holding stocks. This is very simple option strategy which can be used safely to protect the profit accrued on holding stocks. This can be used by investors who do not wish to trade intraday or positional trades and invest in blue-chip stocks for long-term gain. Most of us buy insurance for our life but fail to buy insurance for stocks which we hold for long-term investment. In case if you own a stock that has increased considerably in value since you bought it?