How to Protect Your Options Position

If share prices don't decline below $90, it's likely that the investor will not exercise their right to sell and will continue to hold their stock. The trade was enacted for no cost or what we call even money, there will be no loss from the options position aside from the commissions or fees incurred when enacting the trade. It should be evident the balance between strike selection of the put and the call is a delicate one. And I hope that you were able to take some useful information away about the potential protection afforded by using options.