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
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