Protective put
intermediatebullishStrategy parameters
Greeks (current)
Delta
75.250
Gamma
3.675
Theta
-4.209
Vega
9.062
Rho
-2.143
Payoff diagram
P&L at expiryP&L today (theoretical)Current spot
Key metrics
Net cost
$10,132.25
Debit (paid)
Max profit
Unlimited
Max loss
-$632.25
Breakevens
$101.32
Scenarios at expiry
| Move | Spot | P&L at expiry | % of cost |
|---|---|---|---|
| -20% | $80.00 | -$632.25 | -6.2% |
| -10% | $90.00 | -$632.25 | -6.2% |
| -5% | $95.00 | -$632.25 | -6.2% |
| +0% | $100.00 | -$132.25 | -1.3% |
| +5% | $105.00 | $367.75 | 3.6% |
| +10% | $110.00 | $867.75 | 8.6% |
| +20% | $120.00 | $1,867.75 | 18.4% |
Mechanics & risks
How it works
You own 100 shares per contract and buy a put as insurance. Caps your downside in exchange for the premium paid.
When to use
You're long the stock and want a floor before earnings or a known event.
Risks
- Cost of insurance reduces upside.
- Put may expire worthless if stock holds — that's the cost of protection.