Video Library

Protective Put Example: Breakeven and Maximum Loss

Hedge and Acquire Stock

OIC instructor Roma Colwell shares a numeric example of a protective put, showing how to calculate maximum loss, the breakeven price and outcomes at different stock prices at expiration.

0:00 The Protective Put Example Setup
0:24 Defining Your Risk With the 95 Put
0:56 P&L at Each Expiration Price
2:24 Calculating the Max Loss
2:41 With vs. Without the Put on a Drop
3:07 Protection, Not Profit
4:03 The P&L Graph and Its Long-Call Shape

Register to view the complete The Collar Strategy – Your Portfolio's Seatbelt webinar:
https://bit.ly/4w8AmMd

Recommended Videos

A Protective Put Example

A Protective Put Example

Watch how a protective put strategy works through a hypothetical example.

Watch Now
Comparing Protective Puts and Stop Loss Orders

Comparing Protective Puts and Stop Loss Orders

protective put, stop loss order, stop limit order, stop market order, portfolio protection, hedging, downside protection,1987 crash,

Watch Now
Protective Put Overview

Protective Put Overview

Join for a review of the mechanics of a protective put options strategy.

Watch Now
Considerations for Choosing a Strike Price for a Protective Put

Considerations for Choosing a Strike Price for a Protective Put

Strike selection sets the balance between cost and coverage.

Watch Now