Buying A Put Option Would Protect You From -
Buying a is essentially like buying an insurance policy for your stocks. It gives you the right to sell a specific stock at a predetermined price (the strike price ) before a certain date, regardless of how far the actual market price falls. 1. Downside Price Risk
If you'd like to see how this works with a specific example, let me know: The you're looking at The current price How much of a drop you are trying to protect against buying a put option would protect you from
The put increases in value (or allows the sale at the strike), offsetting the losses on your actual shares. Buying a is essentially like buying an insurance
The put expires worthless, and the premium you paid is the cost of your "peace of mind." Downside Price Risk If you'd like to see
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