Protective Puts Explained | Option Strategy Basics

[@RyanOConnellCFA]

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[@danielwei9537]

so helpful

[@RyanOConnellCFA]

Glad it was helpful!

[@dynamicsea2276]

Great video and explanation

[@RyanOConnellCFA]

I appreciate that!

[@suraj2206]

Nicely explained

[@RyanOConnellCFA]

Thank you!

[@juicemanjordan]

very helpful

[@RyanOConnellCFA]

Glad you think so!

[@floorgang1483]

Thankssss

[@RyanOConnellCFA]

My pleasure!

[@funtamania]

Isn't the strike price normally set below the spot price for protective put?

[@Bat12483]

If I purchase a protective put and the stock never goes down, would the loss of the put be considered a wash sale?

[@wxchief6737]

not bad, schwab didn’t want to approve me for long puts, guess this will do :/

[@RyanOConnellCFA]

Oh man, that stinks. That is silly because there is no credit involved for a long put, you just pay the premium with your own cash. Are protective puts a lower tier for permissions on Schaub?

[@wxchief6737]

@@RyanOConnellCFA Correct, It is the base level. Includes covered calls + secured puts, and protective options. I can respect them for trying to protect the new trader… Question since we are here. Would i need the underlying stock to purchase a protective put or can i speculate with it by itself? Thanks, have a good week. :)

[@RyanOConnellCFA]

@@wxchief6737 Yea, it is also probably a major legal issue for them if they let new traders come on and rack up massive losses and debt! What do you mean by speculate with "it by itself"? What is "it", the protective put? If so, a protective put is a combo of two positions: long stock + long put. So a protective put requires owning the underlying stock

[@wxchief6737]

@@RyanOConnellCFA Thanks for the response. I will try to apply again for long options. Those choices aren’t what i’m looking unfortunately. Bring on the pain! Would love to swing via options

[@joeg816]

K for strike. Baseball fan? :) ⚾

[@RyanOConnellCFA]

I go to a couple Texas Rangers games every year but besides that I hardly pay any attention! How about you? And the K for strike price is pretty universally used