Protective puts: insurance a gap cannot skip
Compare a stop loss and a bought put through an overnight gap.
Module 12 of 26, Options for beginners, in practice. Lesson 3 of 6, about 16 minutes.
The takeaway
A put lets you sell at a set price no matter how far the market falls, protecting you from gap risk. But you pay a premium for that protection and must renew it before expiry.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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