Insurance is usually thought about for our homes and our cars, so why not for investments? Protective Puts can be used like insurance to protect positions against market uncertainty, and OIC can show you how it works. In this lively 60-minute session, we’ll cover the basics of Protective Puts and look at the differences between protecting your option position versus your entire portfolio. We’ll also explore using Put Spreads as a protective strategy —and of course, we’ll be taking your questions.
Session topics include:
- Recap of put buying basics – rights, premium, deductible
- Recap example of protective put
- Calculating how many puts to buy for equity protection
- Calculating how many index puts to buy for portfolio protection
- Using a put spread for protection – what you gain and what you give up compared to protective put
- Examples with P&L graphs