To The Moon

On Tuesday, the S&P 500 and the Nasdaq scored record closing highs, while $NVIDIA(NVDA)$ , $Meta Platforms, Inc.(META)$, and $Broadcom(AVGO)$ also closed at new highs.

If you’re worried the stocks you hold might fall below expectations, is there a simple options strategy to “buy insurance” for them?

📘 In The Options Handbook, Buy Protective Put is made for exactly this situation!

▶ What Is a Buy Protective Put? 💡

A Buy Protective Put is a strategy where you purchase a put option while holding the underlying stock.

It gives you the right to sell your shares at a fixed price if things go south, without giving up the upside if the stock keeps climbing.

Think of it as a temporary seatbelt for your portfolio. You don't have to choose between holding and hoping.

▶ Example 📈

Suppose you own shares of Company A, trading at $100, but you worry about a steep drop. You could pay a premium to buy a put option with a strike price of $95.

🔻 If the stock falls to $80, you can still sell at $95, avoiding further losses.

🔺 If the stock stays above $95, the option expires worthless, your loss is limited to the premium, and you still hold your shares intact.

▶ When Does This Strategy Make Sense? 💡

Protective puts help you stay invested while limiting risk.

They’re useful before earnings, in volatile markets, or when you feel uneasy holding a large position. They can also lock in gains without selling your shares.

🎁 If you want to learn more about this strategy, you’ll find a full explanation in The Options Handbook — now available in the Tiger Coin Center! ✨ ✨

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