Protective Puts (11 of 12) | Getting Started with Options | 4-23-24

Getting Started with Options | Barbara Armstrong | 4-23-24
Characteristics and Risks of Standardized Options. bit.ly/2v9tH6D
In this webcast, we discussed protective puts and when an investor or trader might consider using this strategy. We looked at several examples on the thinkorswim paperMoney platform. We also used the thinkback feature on thinkorswim to review a stock that had an earnings report after which the stock gapped down. We discussed when a trader might choose to sell the put for a profit and keep the stock and when a trader might choose to exercise the put and their right to sell the stock at the strike, also the possibility of losing the whole investment on the option trade. We did an example trade where we purchased a stock prior to earnings and bought a protective put at the same time. In another example, we looked at a current position in an example portfolio and bought a put to provide temporary protection over upcoming earnings. We also compared protective puts and stop market orders.
Concerned about how an upcoming event, such as an earnings announcement, product launch, regulatory approval, or legal action, might impact the price of your stock in a negative way? Join this episode to learn how protective puts can help mitigate the potential damage a negative market reaction may create in your portfolio.
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Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading.
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(Scripts are for educational purposes only, are not a recommendation, and are not guaranteed for time or accuracy.):
1 MO: tos.mx/RyY3kRp
3 MO: tos.mx/O0nGkGY
6 MO: tos.mx/LTe5nkk
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