Hedging stock positions can be tricky business.

One of the most common schools of thought is to use a simple protective put strategy

whereby a stock investor would simply purchase a long out of the money put option

to act as insurance in case the stock fell.

Sounds logical, but we're skeptics here at option alpha.

So we went on the hunt to see what research and data says about the protective put strategy

and its effectiveness in protecting or hedging stock positions.

You're listening to the Option Alpha Podcast.

From Option Alpha.com, where we show you how to make smarter trades.

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Now, your host and head trader at option alpha.com, Kirk Dupluses.

All right, hey everyone, this is Kirkier again from Optionafa.com, working every

single week to make this the most popular investing podcast offered online because

it's based on one thing and one thing only, and that's helping you consistently play smarter more

profitable trade so again thank you so much for tuning in today on today's show

number 176 we're gonna go through some of the research that we found out

there regarding the protective put strategy and its effectiveness in

protecting underlying stock positions. Now truth be told we actually started and are literally in the

process of continuing to do a little bit more research ourselves on long put option strategies,

how you can use them, different parameters which we'll test, and we'll get to one of those in a future show.

We actually did post a little bit of a snippet of our research on our

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