zero cost collar

[zxfmontreal]

Can someone please explain to me this concept and the disadvantage of zero cost collar comparing to a straddle? Background is the analyst bids on sharpe increase and decrease on stock price.
Is zero cost collar long put short call or short put long call?

 

[breadmaker]

For a collar, you want downside protection (long put) for the underlying. You pay for it by selling off your potential upside (short call). The more downside protection you want, the more potential upside you have to give up.
Under a straddle, you are long both a call and a put with the same strike price and expiry date. It pays off if there is large price movement away from the strike price.