What if you could own a stock and still have a plan for when things go wrong?
Protective puts are an options strategy that can be used to help define the downside risk of a stock or portfolio position. This session breaks down how they work, how they are structured and how different variables affect the cost and coverage of the strategy. During this session, OIC instructor Roma Colwell will cover an outline that includes:
- What a protective put is and how it establishes the right to sell a stock at a set price
- How the put functions as a price floor, gaining value if the stock falls below the strike price, offsetting the losses in the underlying position.
- Strike price selection and how the level of protection relates to the amount an investor is willing to pay for the put
- Expiration selection: the differences between long-dated and short-dated puts
- How protective puts and stop-loss orders differ in the way they manage downside exposure
Register today to join Roma for this educational session and gain access to our complete library of market resources.