Options Strategy Snapshots

The Protective Put

When you want to protect yourself against sudden unexpected drops in stock price, you might consider employing the Protective Put strategy. Here’s the fourth in our series of infographics designed to give you the basics of options trading strategies. Check out the snapshot below, then watch our webinar that covers this useful trading strategy.

Platform Example

The screenshots below represent this trading strategy in action. For example, you own 100 shares of PM but want downside protection— so you buy 1 PM Oct 78.5 put for $0.75.

Source: OptionsHouse(click to enlarge)

IMPORTANT: The projections or other information generated by tradeLAB regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.

Watch the Long Put Spreads Webinar

Similar strategy to the Protective Put

long-put-spreads-webinar-image

Information provided for educational purposes only and should not be considered a recommendation.