Tag: protective puts

Introduction:Protective put strategies are an essential tool for investors seeking downside protection in volatile markets. One crucial aspect of implementing this strategy effectively is selecting the appropriate strike price for the put options. In this article, we will explore the significance of strike price selection in protective put strategies and discuss how it can enhance risk management. Understanding Protective Put Strategies:A protective put strategy involves purchasing a put option on a stock or ETF to protect against potential downside risk. The put option acts as insurance, providing the right to...