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Research method

Protective put

Protective put is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.

Output
Research filter
Input
Account equity, volatility, stop distance and exposure
Horizon
Before entry and throughout the position
Best use
Keep a loss or exposure decision bounded before a trade is placed.

Registry evidence level: replicated. This is a navigation record, not a performance claim.

  • Input: Account equity, volatility, stop distance and exposure.
  • Output: filter.
  • Use boundary: Keep a loss or exposure decision bounded before a trade is placed.
The graph5

How the method is built, and where it has been read

Depends on

Read in the archive24 of 53 readings

1984A long silver put as a prepaid loss capOptions and volatility1987Write the exclusion zone, then choose the structureOptions and volatility1988Two-sided cheap premium, volatility, and protective putsOptions and volatility1991Synthetic stock and protective put payoff constructionOptions and volatility1991Precommit scale-outs and puts to replace impulseDecision process1991Option deductibles that bound position riskOptions and volatility1992Portfolio beta overlays with index futures and putsPortfolio construction1993Keep a futures loss bounded when stops failOptions and volatility1994When standing puts fail the drawdown testDrawdown and survival1994Even-money call spread after a stop-limit gapOptions and volatility2000Compare a Protective put and a Stop-loss order before entryStops and loss limits2002Rebuilding a long-stock book with calls, puts and collarsOptions and volatility2003Implied-volatility regimes, straddles, and protective putsOptions and volatility2004Option loss pacing with spreads and protective putsOptions and volatility2004Constructing protective collars and reading cheap premiaOptions and volatility2006Protective collar, net delta, and implied volatilityOptions and volatility2006Oil proxies, volatility regimes, and bounded overlaysOptions and volatility2007A job-first audit of commodity options in a futures bookOptions and volatility2007Sizing options by assignment, spread legs, and portfolio marginOptions and volatility2007An index put as deductible insurance for an active stock bookOptions and volatility2007Fund a put-hedged long by remaining package lossSizing and leverage2007Cash-secured puts, assignment risk, and post-entry overlaysOptions and volatility2007Interest as a sizing filter on collared stockOptions and volatility2008Seasonal regimes, index put overlays, and call-spread mechanicsSeasonality and regimes
This registry entry describes a research method. It is not investment advice and does not make a performance claim.