Buying A Put Option Would Protect You From Official

The primary reason investors buy puts is to hedge against a drop in a stock's value. If you own 100 shares of a company at $50 and buy a put option with a $45 strike price, you have guaranteed that you can sell your shares for at least $45. Even if the stock crashes to $10, your exit price is locked in. 2. Market Volatility and "Black Swan" Events

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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 The primary reason investors buy puts is to