Uploaded July 2025 | Updated September 2026, 2 weeks ago
A common options strategy is the Protective Put. This is when you buy a put option to "protect" your stock investment from downside risk. If your stock shares drop suddenly, you can use the put option to cancel that out. This comes at a cost - the option premium - but in some situations the insurance may be worth it.
A common options strategy is the Protective Put. This is when you buy a put option to "protect" your stock investment from downside risk. If your stock shares drop suddenly, you can use the put option to cancel that out. This comes at a cost - the option premium - but in some situations the insurance may be worth it.
