The Benefits of a Stop Loss Order

Put holders have the right to sell stock at their strike price. By purchasing a 90 strike foot or any strike for that matter, the investor is selecting an exit price at which they are able to sell their stock. Oftentimes, this loss might even be welcomed by the protected put holder as their end game is not necessarily to sell the stock but rather to hold it and benefit from increasing share prices. In an ideal world, the protection offered by the put is actually never even needed.