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28 Δεκ 2020 · A protective put is a risk-management strategy using options contracts that investors employ to guard against a loss in a stock or other asset. For the...
A protective put is a risk management and options strategy that involves holding a long position in the underlying asset (e.g., stock) and purchasing a put option with a strike price equal or close to the current price of the underlying asset.
11 Ιαν 2024 · Protective Put Diagram. The protective put strategy is a prudent choice for investors seeking to balance the potential for growth with the assurance of a defined safety net. It exemplifies the adage of hoping for the best while preparing for the worst, enabling investors to navigate the undulations of the stock market with greater confidence.
A protective put position is created by buying (or owning) stock and buying put options on a share-for-share basis. In the example, 100 shares are purchased (or owned) and one put is purchased. If the stock price declines, the purchased put provides protection below the strike price.
15 Μαρ 2024 · A protective put is a single-leg options strategy combined with long stock that defines the underlying asset’s downside risk. Protective puts are also known as married puts because the long stock and long put are “married” together to protect against a potential decrease in the stock’s price. View risk disclosures.
A protective put is an options strategy in which you, the investor, buy a put option on a stock you already own, to protect against potential losses if the stock price declines. Puts are traded on various underlying assets, which can include stocks, currencies, commodities, indices and more.
14 Ιουλ 2023 · The protective put strategy involves purchasing a put option on a security or portfolio of securities that provides the investor with the right to sell the underlying asset at a predetermined price, known as the strike price, at any time before the expiration of the option.
