Using stock options, investors can build upon these strategies and better control their risk/reward profile. In this article, we’ll take a look at how protective puts can be used to hedge a long ...

What Is a Protective Put? A protective put is an options trading strategy that aims to protect against potential loss in an investor's asset, like a stock position. Put options give you the right ...

And if you hadn't picked up that protective put, you could have bid farewell to all of your paper profits. As with many option-buying strategies, your maximum potential loss on the protective put ...

When trading options amid the volatility surrounding earnings, one way to mitigate risk is with protective puts. One way traders can "insure" their investment and limit losses in the event of a ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. When the markets start swinging wildly ...

Using stock options, investors can build upon these strategies and better control their risk/reward profile. In this article, we’ll take a look at how protective puts can be used to hedge a long ...

Protective puts are handy when your outlook is bullish ... investment in a relatively short period of time. Multiple leg options strategies involve additional risks and multiple commissions ...

A protective put buyer is simply using the option as a form of insurance if the stock tanks; the trader's ultimate goal is for the shares to move higher -- and ideally offset the cost of the ...

When the markets start swinging wildly, investors often run for safety as volatility creates fear among market participants. But, there is no need to panic! A protective collar is an options ...

However, this risk may be mitigated by employing various options strategies in a way that will secure your capital from major losses. A Protective Put Option is one such Options trading strategy.