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How to buy a protective put



How do you buy protective puts?

A protective put position is created by buying (or owning) stock and buying put options on a share-for-share basis. In the example, 100 shares are purchased (or owned) and one put is purchased. If the stock price declines, the purchased put provides protection below the strike price.

Are protective puts worth it?

If you’re inclined to protect your investment with puts, you should make sure the cost of the puts is worth the protection it provides. Protective puts carry the same risk of any other put purchase: If the stock stays above the strike price you can lose the entire premium upon expiration.

When should I buy a protective put?

Protective puts are commonly utilized when an investor is long or purchases shares of stock or other assets that they intend to hold in their portfolio. Typically, an investor who owns stock has the risk of taking a loss on the investment if the stock price declines below the purchase price.

Why would you buy a protective put?

The main goal of a protective put is to limit potential losses that may result from an unexpected price drop of the underlying asset. Adopting such a strategy does not put an absolute limit on potential profits of the investor. Profits from the strategy are determined by the growth potential of the underlying asset.

How much can you lose on a put option?

Potential losses could exceed any initial investment and could amount to as much as the entire value of the stock, if the underlying stock price went to $0. In this example, the put seller could lose as much as $5,000 ($50 strike price paid x 100 shares) if the underlying stock went to $0 (as seen in the graph).

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How do I protect my stock from puts?

The buyer of a put has the right to sell a stock at a set price until the contract expires. If you own an underlying stock or other security, a protective put position involves purchasing put options, on a share-for-share basis, on the same stock.

How do you profit from puts?

When you buy a put option, you’re hoping that the price of the underlying stock falls. You make money with puts when the price of the option rises, or when you exercise the option to buy the stock at a price that’s below the strike price and then sell the stock in the open market, pocketing the difference.

Why are puts more expensive?

The further out of the money the put option is, the larger the implied volatility. In other words, traditional sellers of very cheap options stop selling them, and demand exceeds supply. That demand drives the price of puts higher.

What is downside protection?

Downside protection is a risk-management strategy that attempts to reduce the frequency and magnitude of losses in your portfolio. If your portfolio needs to recover from a loss, it’s not compounding wealth—it’s just playing catch up.

How do I get downside protection?

Downside protection can be carried out in many ways. It is common is to use options or other derivatives to limit possible losses over a period of time. Protection from losses can also be achieved through diversification or stop-loss orders.

How can you protect against downside risk?

Here are four strategies to consider:

  1. Sell a covered call. This popular options strategy is primarily used to enhance earnings, and yet it offers some protection against loss.
  2. Buy puts. When you buy puts, you will profit when a stock drops in value.
  3. Initiate collars.
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What is a stock downside?

Key Takeaways. Downside describes the negative movement of an economy, or the price of a security, sector, or market. Your theoretical downside is 100% if the stock you bought falls to $0. However, if you short the company, your downside is not capped and is theoretically infinite.

Can you lose money in stocks?

Yes, you can lose any amount of money invested in stocks. A company can lose all its value, which will likely translate into a declining stock price. Stock prices also fluctuate depending on the supply and demand of the stock. If a stock drops to zero, you can lose all the money you‘ve invested.

What are the risks of stock ownership?

Owners of common stock have no guarantees, but are accepting the risk in exchange for potential greater gains than other safer investments. However, the shareholder’s liability is limited to the price paid for the common stock. Common stock can be very volatile and is generally considered a high risk investment class.

How do beginners buy stocks?

How To Invest In Stock Market For Beginners?

  1. Documents Required For Investing In Stocks. Your PAN Card.
  2. Demat Account. A demat account is that which will hold one’s shares in the name of the account holder.
  3. Trading Account. A demat account and trading account go hand in hand.
  4. Linked Bank Account.

How much do I need to invest to make $1000 a month?

For every $1,000 per month in desired retirement income, you need to have $240,000 saved. With this strategy, you can typically withdraw 5% of your nest egg each year. Investments can help your savings last through a lengthy retirement.

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Is it worth buying 10 shares of a stock?

To answer your question in short, NO! it does not matter whether you buy 10 shares for $100 or 40 shares for $25. Many brokers will only allow you to own full shares, so you run into issues if your budget is 1000$ but the share costs 1100$ as you can’t buy it.

How much can you make from stocks in a month?

You make 20 trades per month. 10 trades are losing trades, and you lose $300 per trade = – $3,000. 10 trades are winning trades, and you make $600 per trade = $6,000. This means that you now make $3,000 per month.

How much do I need to invest to make $500 a month?

To make $500 a month in dividends you’ll need to invest between $171,429 and $240,000, with an average portfolio of $200,000. The actual amount of money you’ll need to invest in creating a $500 per month in dividends portfolio depends on the dividend yield of the stocks you buy.

How much money do I need to invest to make $3000 a month?

By this calculation, to get $3,000 a month, you would need to invest around $108,000 in a revenue-generating online business. Here’s how the math works: A business generating $3,000 a month is generating $36,000 a year ($3,000 x 12 months).

How To's

How to Easily Make a Video with Pictures?




Creating a photo slideshow is a good way to share your photos with friends and family. It would be better if you added music to the slideshow. How to make video with pictures and music? Here are the top 3 ways!

  1. Make a Video with Pictures Using MiniTool MovieMaker
  2. Make a Video with Pictures Using the Photos App
  3. Make a Video with Pictures Using Clideo

Make a Video with Pictures Using MiniTool MovieMaker

The first way to make a video with pictures is by using the best free slideshow maker – MiniTool MovieMaker. It allows you to make a video from pictures, video clips and GIFs and add music to the video. Aside from that, it offers you some stylish text templates, transitions, motion effects, filters and intro templates.

Now, let’s see how to make a video with pictures using MiniTool MovieMaker.

Step 1. Download and install MiniTool MovieMaker.

Step 2. Launch the program after the installation and close the pop-up window to access the main user interface.

Step 3. Click on Import Media Files to import the needed pictures, add these pictures to the timeline and drag & drop the pictures to where you want to place.

Step 4. Then you can adjust the duration of each picture and add transitions, text, filters, and motion effects to these pictures.

Step 5. Once done, import your favorite music from the computer and add it to the timeline. Or use an audio track from the built-in music library.

Step 6. Tap on Export to adjust the output settings. Here you can change the output video format, filename, destination folder and video quality as needed.

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Step 7. In the end, press on Export to export the photo slideshow.

Make a Video with Pictures Using the Photos App

If you are a Mac user, then you don’t need to install any third-party slideshow maker because the Photos app can convert photos to slideshow. Here’s how to make a video with pictures using the Photos app.

Step 1. Open the Photos app and select the photos you want to use in the video.

Step 2. Click on File in the top toolbar. From the drop-down list, navigate to Create > Slideshow > Photos.

Step 3. Enter the name and click the OK button. Then rearrange the photos.

Step 4. Click the Themes button and select a theme you like.

Step 5. Tap the Music button, click the down arrow next to Music Library and choose a suitable song for the video.

Step 6. Then you can click on Preview to see the video.

Step 7. If it’s OK, hit the Export button in the top right corner to export the video.

Make a Video with Pictures Using Clideo

If you are looking for a way to make video with pictures online, here recommend the free online slideshow maker – Clideo. It lets you convert pictures to video in minutes. Besides that, Clideo also allows you to merge videos, compress videos, resize videos, crop videos, cut videos, rotate videos and so on.

Below are the steps on how to make a video with pictures online.

Step 1. Open your web browser and visit the Clideo website.

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Step 2. Click on Slideshow Maker in the top toolbar.

Step 3. Next, tap on Choose files to upload pictures from your device, or click the down arrow next to Choose files to load pictures from Google Drive, Dropbox, or URL.

Step 4. Drag pictures into the order you want and change the pictures’ duration from the Image Duration box.

Step 5. In the right panel, click the Add audio button to import the wanted audio track and trim the audio file.

Step 6. Go to the Format box and select the output format you want. Then press the Create button to convert pictures to video.


Here are the top 3 ways to make a video with pictures listed in this post! Have a try!

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Convert an Image: How to Convert to PNG in 4 Easy Steps




Portable network graphics, or PNG, has been around in our lives for nearly 30 years. People continue to use this image file for a variety of applications, whether it’s for photography or graphic design.

But if you’ve got an image that’s in another format, how do you convert to PNG? What are the steps you need to take to for an image to convert to PNG?

That’s what we’re here to look at today. Read on to find out more about how to convert different image files to PNG. 

What is PNG?

PNG, or portable network graphics, is the term people use when they’re referring to the high-resolution image file. It’s famous for maintaining the quality of the original image, as it uses lossless compression.

Whether you’re using it for website building, logo design, or photography, PNGs have been around for decades because of their compatibility and versatility. Let’s quickly go over those benefits below:

Benefits of PNG

The biggest benefit of using a PNG format is the lossless compression we mentioned earlier. Your computer won’t compress an image when converting something to a PNG.

There are also lots of transparent PNG images out there. 

How to Convert JPG to PNG

If you’re looking to convert a JPG to PNG, it’s actually quite simple. There are slight differences in how to do so based on whether you’re on Windows or Mac, so let’s break down the steps for each OS.

Using Windows

On Windows, you can use Microsoft Paint to quickly convert a JPG to a PNG. Find the JPG file you want to convert, right-click it, and choose “edit.”

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It should take you to Paint, where all you need to do is select “Files” then “Save As.” On the “Save as Type” dropdown, choose the PNG option.

Using Mac

If you’re a Mac user, use the Preview program to open up your JPG file. Click on “File,” then choose “Save As.” The PNG option should appear on the dropdown menu.

After you choose the PNG option, you’re done! Same as with Windows, find the file path you want and you’ve converted your JPG to PNG just like that.

Alternative Methods

Maybe you don’t have time to go through your computer and find these programs, or maybe you want something more versatile. Some default programs don’t let you convert SVG to PNG files, for example.

If you want to do that, you can find and download other programs to get this done. A PNG maker is pretty easy to find on the internet, but we suggest you choose that one for the best results. 

Convert to PNG the Easy Way

If you have an image that you’d like to convert to PNG, it’s actually a lot simpler than you might think. Use this guide to help you understand what PNGs are and how you can convert your favorite image files to PNGs.

For more informative articles on image files and other topics, check out the rest of our site!

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How To's

How to add a phone number to iMessage on a Mac, and receive messages on your computer




If you’re looking to add your phone number to iMessage on your Mac computer, you can do so in a few quick steps using your iPhone and Mac.

Simply enable iMessage and add your phone number on both your iPhone and Mac , and you’ll begin receiving messages to both devices in no time.

By receiving iMessages on your Mac computer, you can increase your workflow, as well as keep in touch with those trying to contact you, even if your iPhone is in another room or away from you.

You can add your phone number to your iMessage account and turn it on easily on your Mac to start receiving messages right away.

1. First, on your iPhone , go to Settings > Messages > Send & Receive.



2. If you haven’t yet signed in with your Apple ID, do so by tapping “Use your Apple ID for iMessage.”



3. Once signed in, find the section titled “You can receive iMessages to and reply from” and be sure your phone number is selected. If so, it will have a check beside it.

4. If your Mac has already signed in with your Apple ID, you may receive a pop-up on the homescreen asking if you’d like to add your phone number to iMessage and FaceTime. If so, click yes. Once you’ve added your phone number, you can turn it on in iMessage on your Mac .



1. After you’ve added your phone number for iMessage on your iPhone, launch Messages on your Mac , which can be found under “Applications.”

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2. Once you’ve launched Messages (and signed in with your Apple ID), go to Messages > Preferences.



3. In the Preferences menu, select the iMessage icon, which looks like an address or “at” sign.

4. To make sure iMessages come to your Mac , make sure your phone number is selected under the “You can be reached for messages at:” section.



1. To remove the phone number for iPhone from other devices it may be connected to, on your iPhone go to Settings > Messages > Send & Receive. Tap where you see your Apple ID. In the pop-up window, tap “Sign Out.”



2. On Mac , launch Messages. Then click Messages > Preferences > iMessage. Under the section “You can be reached for messages at:,” deselect your phone number.

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