OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Protected Strategy'

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What is Protected Strategy in Options Trading ?

Protected Strategy
A type of trading strategy that is hedged with options and futures so as to make it a very small risk trade. The stock holdings can be protected by buying corresponding number of puts of the same stocks so as to protect the investment in case the market falls down substantially. With this strategy the fall in stock price is offset by gain in the long put(s).

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