🌟🌟🌟Protective Puts are a powerful way to hedge high volatility tech stocks especially when you are already holding them and want to stay invested while guarding against sharp drops.
What it is : You buy a Put Option on a stock you already own for example $NVIDIA(NVDA)$ . This gives you the right to sell Nvidia at a predetermined price (strike) before expiry.
Why it works: If the stock plunges, your put gains value, offsetting losses in the underlying shares.
Best use case : Stocks like $Tesla Motors(TSLA)$ are prone to earnings shocks or macro volatility.
@Tiger_comments @TigerStars @TigerClub @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments