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Anyone here understand options?

z0mb13

Lifer
It seems that protective put strategy is very safe/smart to do comparing to buying a stock straight up

basically protective put is buying a stock, and buying a put option at the same strike price. When the stock price goes up, you make money from the stock. When the stock goes down, the worst you can do is lose out the premium you paid for the put option (since you can always sell ur stock at the strike price)

My question is: why are people still buying a stock straight up? it doesnt make any sense if they can do a put option at the same time



 
Originally posted by: axelfox
Options are riskier and therefore maybe people like buying stocks straight up.

but in protective put strategy the put option acts as a "safe net"

or u dont really understand what I was talking about?
 
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