OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Protective Put'

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What is Protective Put in Options Trading ?

Protective Put
Risk covering strategy to protect downside risk in long stocks by purchasing put against it. Although this does provide a portfolio hedge, performance has shown to be very poor due to the high hedging cost when buying the protective put(s).




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Hi, this may be interesting you: Protective Put! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/protective-put/