The stock market is currently approaching levels that resemble a bubble. Investors need to be cautious and utilize reliable tools and strategies to safeguard their capital while aiming to secure reasonable and fair returns.

The Strategy: This site presents a carefully crafted plan for trading stocks that consistently stay within a defined price range. Large, well-established companies such as Coca-Cola, Ford, Exxon-Mobil, Chevron, and Pfizer frequently have stock prices that hover close to their 200-day moving average. These stable stocks are particularly well-suited for the "Collar Option" strategy, which provides traders with a built-in safety net to help manage risk. A detailed explanation of how this strategy works is provided here.

Sell a call option at the money strike price and buy a put option at a lower strike price. The money earned from selling the call helps cover the put option cost. The put's strike price sets a floor on losses. This strategy gives a steady income from option premiums and dividends. An example trade is shown below.

The Trade: Ford Motor Company(F). Date: November 17, 2025.Bought 100 shares at $13.15 each. Bought one put option with an $11 strike for $0.29 each, costing $29 total. Sold one call option with a $13 strike, earning $1.04 each, or $104 total. Both options expire in 123 days on March 20, 2026.

Calculation: A dividend payment of $0.15 per share is factored during the contract period. The maximum loss would be $125, and the maximum profit would be $90. The annualized return is 20.34% if the stock is called away from the investor. The trade can be repeated after expiration based on the stock price.