Which of the following strategies is most concerned with limiting losses and gains?

The collar strategy is designed specifically to limit both potential losses and gains on an investment. It involves holding a long position in a stock while simultaneously purchasing a put option to protect against declines in the stock's price, as well as selling a call option to generate income or offset the cost of the put option.

By setting the range of potential outcomes—where losses are capped by the put option and gains are capped by the call option—the collar strategy provides a balanced approach to managing risk. This makes it particularly suitable for investors who prioritize preserving capital while still participating to a limited extent in stock appreciation.

Other strategies may focus on maximizing upside potential or providing specific forms of protection, but the collar strategy uniquely addresses the dual goal of managing losses and gains within predetermined levels, allowing investors to obtain a more conservative investment profile.