Options Buying Strategies: Protective Puts Explained | Fidelity Investments

Before trading options, please read the Options Disclosure Document: https://www.theocc.com/Company-Inform....

Looking to help minimize risk while investing? Consider a protective put. Watch this episode of Trading Fundamentals from Fidelity to better understand this options trading strategy and how to use it.

00:47 What is a protective put?
01:58 Example of a protective put
02:33 What happens if stock price rises
03:04 What happens if stock price falls
04:37 What happens if stock price doesn’t change

• Learn more about trading options: https://www.fidelity.com/learning-cen...
• Sign up for a coaching session with the Trading Strategy Desk® where you can ask your questions to a coach with real trading experience: https://www.fidelity.com/learning-cen...
• For more about trading at Fidelity: https://www.fidelity.com/trading/over...

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Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Supporting documentation for any claims, if applicable, will be furnished upon request.

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