A put option purchased for an underlying security that is already owned by the holder of the option. A protective put defends against a drop in the share price of the underlying security.
Related information about protective put:
- Protective Put Definition | Investopedia
A risk-management strategy that investors can use to guard against the loss of unrealized gains. The put option acts like an insurance policy - it costs money, ...
- Protective Put - The Options Industry Council
Home > Strategies & Advanced Concepts > Strategies > Protective Put ... The protective put establishes a 'floor' price under which investor's stock value cannot ...
- Protective Put Explained | Online Option Trading Guide
What is Protective Put? See detailed explanations and examples on how and when to use the Protective Put options trading strategy.
- Protective Put | Trading Put Options - The Options Playbook
Buying a protective put gives you the right to sell an underlying stock at a strike price below the stock. Protective puts are often an alternative to stop orders.
- Protective Put - Option Trading Tips
a protective put is buying the underlying asset while buying put option contracts.
- Buying a Protective Put | Hedging With Options
Buy insurance against a stock market loss with a Protective Put. Never lose money in the stock market again.
- Protective Put - Ise.com
Options Strategies: Protective Put. An investor who purchases a put option while holding shares of the underlying stock from a previous purchase is employing a ...
- protective put - Financial Dictionary - The Free Dictionary
A put option owned in conjunction with the corresponding stock. A protective put guarantees the holder will receive at minimum proceeds that equal the exercise ...