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Protective Put
hedge Capped lossAdvanced: insurance for a stock you own.
⚠ A hedge for an existing position — not a standalone win-rate signal, so it is taught with concrete strikes rather than auto-recommended from a backtest.
When to use it
Own 100 shares and buy a put as downside insurance. Caps your loss below the put strike while keeping all upside. Use through events or to protect a gain.
Max profit
Unlimited (you keep the stock's upside).
Max loss
Stock price minus put strike, plus the put premium.
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
This is a hedge / protective overlay on a stock position you already own — not a
standalone win-rate signal — so it's taught here with concrete strike construction rather than backtested ticker
recommendations.
Open any ticker's trade cockpit and pick this strategy to see specific strikes, max loss, and max profit.