# Protective Put

> What does this insurance cost you per year, as a percentage of the position?

| Property | Value |
| --- | --- |
| Market phase | Clear uptrend, expected to continue, Big move expected, direction unknown (event, coiling at the edge of a range), Clear downtrend or an outright crash |
| Driver | Delta - you get paid because price moves your way |
| Direction | bullish with downside protection |
| Max profit | unlimited |
| Max loss | (your cost basis minus the put strike) plus the debit paid |
| Risk defined | Yes |
| Legs | +100 shares; +1 Put @Kp |
| Approval level | 1 (Covered positions (covered call, protective put) - the lowest approval tier) |
| Experience | Beginner |

## Formulas

```text
Break-even: S0 + D
Max profit: unlimited
Max loss: (S0 - Kp) + D
```

## Legs

1. +100 shares
2. +1 Put @Kp

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/protective-put)