Stocks & Commodities V. 38:08 (4041, 45): Explore Your Options by Jay Kaeppel

Stocks & Commodities V. 38:08 (4041, 45): Explore Your Options by Jay Kaeppel
Item# V38C08_102KAEP
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Explore Your Options by Jay Kaeppel

USING PROTECTIVE PUTS

I was told that buying a put option is a good way to limit the risk on my stock positions. But I know that I have to pay an option premium to buy a protective put. Is this a good idea? And what are the primary considerations?

The strategy you are asking about is commonly referred to as a married put ...




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