Buying A Put Option Would Protect You From Link

The protection isn't free. To get this "insurance," you pay a .

AI responses may include mistakes. For financial advice, consult a professional. Learn more buying a put option would protect you from

The put increases in value (or allows the sale at the strike), offsetting the losses on your actual shares. The protection isn't free

The primary reason investors buy puts is to hedge against a drop in a stock's value. If you own 100 shares of a company at $50 and buy a put option with a $45 strike price, you have guaranteed that you can sell your shares for at least $45. Even if the stock crashes to $10, your exit price is locked in. 2. Market Volatility and "Black Swan" Events buying a put option would protect you from