- Published on
TIL: Using Protective Put to (Partially) Secure Unrealized Gain or Hard Limit Loss When You're Long
- Authors
- Name
- Teddy Xinyuan Chen
A very simple and boring strategy, suitable for those who are extremely risk-averse or the stock is likely going to make wild swings or even falling knives, like what happened on 8/5/24.
https://www.investopedia.com/terms/p/protective-put.asp
Simple hedging for longing a stock with a married put (Assuming that you buy the put with immediate expiration) | Credits: Investopedia
See Also
- Stop vs stop-limit, and circumstances stop-limits won't trigger, such as the falling knife: https://www.investopedia.com/ask/answers/09/stop-limit-guarantee.asp
- Large Gap Down