OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Downside Protection'

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What is Downside Protection in Options Trading ?

Downside Protection
The hedge or risk reduction provided by a position as compared to owning/shorting the underlying stock outright. This is a common term in buy-write (covered call) and short put strategies.




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Hi, this may be interesting you: Downside Protection! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/downside-protection/