Tag Archives: at-the-money (ATM) or out-of-the-money (OTM)

Protective Puts – A term insurance with benefits in a falling market

Protective put
  • 4mins read

A Protective Put Strategy is basically an insurance strategy, as it protects against a fall in the stock price. However, in a falling market, the difference between the price (premium) you pay to buy the put and its price at settlement could deliver a gain.

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