OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Protective Put'

« Back to the Options Trading Glossary

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).

Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

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