Protective Put
Insurance strategy protecting stock holdings from decline.
Beginner
Market Outlook
bullish
Family
single-leg
Capital Req
high
Risk Profile
high
Strategy Overview
Key characteristics and when to use
Structure
Own Stock + Buy Put
Greek Profile
Positive delta, negative theta, positive vega
Characteristics
DebitProtectionFoundation
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Unlimited (stock gains minus put premium)
Max Loss
Stock price - put strike + put premium
Breakeven
Stock purchase price + put premium