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Community: Investing Wiki

Term Of The Hour

protective put trade: Original post by Jonathan Langsdorf of Demand Media A protective put trade with options can be used to protect the value of a stock investment against an sudden drop in share price. The protective put can be used in place of a stop-loss order, providing more flexibility than the on/off characteristics of a stop-loss. Using a protective put requires an investor to already own the stock to be…

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