{"id":45222,"date":"2023-03-27T09:13:36","date_gmt":"2023-03-27T07:13:36","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/protective-put\/"},"modified":"2023-03-27T09:13:36","modified_gmt":"2023-03-27T07:13:36","slug":"protective-put","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/protective-put\/","title":{"rendered":"Protective Put"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.captrader.com\/en\/glossary\/what-are-options\/\">Options<\/a> are primarily instruments for the\u00a0<strong>Fuse<\/strong>\u00a0against price fluctuations. On the stock markets, the risk for investors is usually falling prices. The\u00a0<strong>Protective Put<\/strong>\u00a0is a simple option strategy that allows you to hedge individual stocks or a portfolio of stocks (as well as long positions in other underlyings such as ETFs and futures) against falling prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Protective Put?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The term \"protective put\" refers to the purchase of a put option (<a href=\"https:\/\/www.captrader.com\/en\/glossary\/long-put\/\">Long Put<\/a>) to hedge an existing long position in the underlying and is mainly used by private investors to hedge equity positions against falling prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does a Protective Put work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A long put is basically a&nbsp;<strong>bearish strategy<\/strong>which makes a profit if the price of the underlying falls. For example, if you own 100 shares in any company whose share price is EUR 100 and you buy a protective put with a strike price of EUR 100, you have the right to sell your 100 shares at EUR 100 per share on the expiration date or during the term of the option.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Should the share price rise, your share position will benefit from this and the purchased <a href=\"https:\/\/www.captrader.com\/en\/glossary\/glossary-put-options\/\">Put option<\/a> expires worthless. However, their actual profit is reduced by the amount of the option premium paid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of an at-the-money put option, you can also buy an out-of-the-money put option. Thus, the price of the option is significantly cheaper, but the protection of the option against price losses of the share takes effect only from the strike price of the option.<\/p>","protected":false},"author":7,"featured_media":0,"template":"","class_list":["post-45222","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/7"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}