The Protective Put | OptionsANIMAL

The Protective Put

July 30, 2012 / OptionsANIMAL

Should I stay or should I go now?!?!?!!! This is a title to a favorite song of mine from the 80’s.

The group was called The Clash. If you ask me, that really describes the market today. An international mix of economic reports with headline news that moves our market hundreds of points at a time! It also happens to have some lyrics that represent todays’ market.   “IF I go there will be trouble and if I stay there will be double”.  How do you trade this type of market with the ECB announcement, the F.O.M.C. announcement, and  the average work week coming up with the non-farm payroll numbers this week.  There is huge upside potential in the market but don’t forget to look at the huge downside risk.

My answer is simple for those who understand the power of option trading.  Buy insurance on the stock!!!  Use a simple strategy called the Protective Put taught in the OptionsANIMAL trading system. A put or put option is a contract between two parties to exchange an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity). One party, the buyer of the put, has the right, but not an obligation, to sell the asset at the strike price by the future date, while the other party, the seller of the put, has the obligation to buy the asset at the strike price if the buyer exercises the option.

In plain English, buy your stock and buy the right to sell your stock at a certain price for a certain amount of time.  The net debit for the trade is higher than just buying the stock.  You have the stock price and the debit price of the long put.  The risk is much lower than just having stock sitting in your portfolio.  The option acts as insurance on the stock and allows you to sell your stock at a higher price if it comes tumbling down.  Diversification can definitely help a portfolio, but if the market can move down I want long put protection.  Remember the golden rule of trading: Sell high and buy low.  If you chose to you could sell the stock thru the use of your option and use the money to buy back in at a lower price?  Maybe the option makes up some of the down side movement?  Maybe the option gives you the peace of mind or comfort to stay in todays’ market?  The last thing we can afford to do is miss the opportunity to make some money in today’s market.  Should I stay or should I go?  I choose to stay with my protective put strategy!

OptionsANIMAL Instructor

Options Trading Resources

options trading tips * option trading class * trading system * trading education * options trading community * beginner investor * options trading companies

Posted in

OptionsANIMAL

Join 500,000+ Investors

Get the latest class invites delivered straight to your inbox.

Our Students Love Us

Excellent
OptionsANIMAL4.9
Michael Canzoniero
11 months ago
Options Animal – A Solid Investment for the Right Person
If you're seriously thinking about joining Options Animal, here’s what I’ve found to be true from my own experience.
First off, this isn’t for everyone — and I mean that in a good way. Options Animal attracts a unique kind of member: curious, serious about financial education, and committed to growth. The membership tends to be smart, experienced, and inquiring. The community is intelligent, well-educated, and experienced, but also welcoming and supportive. People are friendly, down-to-earth, and genuinely interested in helping each other grow. If that sounds like your kind of group, you’ll probably feel right at home.
That said, this program is best suited for investors who are ready to put in the time. The program expects you to study, apply what you learn, and take a hard look at how you're doing, you’ll find tremendous value here. There’s meaningful homework. There’s a process. But if you’re committed, it really does pay off.
Discipline is also key. The instructors provide a clear, structured approach. When I deviated from that structure, I felt the consequences — but also gained important insight. Mistakes become learning opportunities here, and that’s part of what makes the experience so worthwhile.
One of the big strengths of OA is how they teach you to be flexible. They teach you to adapt to market conditions, not just follow a static strategy. It’s clear they live by this principle, and their teaching reflects that.
Most importantly, you’re never on your own. The team at Options Animal is always available, approachable, and incredibly generous with their time and expertise. Whether you're asking questions, learning from live sessions, or following along with real trade recommendations, you’ll feel supported every step of the way. Each instructor brings a different perspective, which allows you to find an approach that matches your style and goals.
Now, about the cost: if you're thinking of it as an expense, it might not feel worth it. But if you see it as an investment in your financial future, it makes a lot more sense. You're paying for education, structure, and guidance that can really make a difference. You don’t need a huge portfolio either — the strategies can scale.
A perspective regarding returns (ROI), the payoff improves with time. As your skills and confidence grow, so does your ability to generate solid returns. For me, this has absolutely been a smart investment — one that continues to pay dividends both financially and in terms of personal growth.
For the right individual, Options Animal is more than just a program — it’s a powerful, ongoing advantage being a really solid investment — in every sense of the word.
Response from the owner:Thank you for sharing your detailed and insightful experience with Options Animal. We're thrilled to hear that you found value in our community, structure, and instructional approach. Your emphasis on discipline and adaptability perfectly captures what we strive to teach our members. It’s rewarding to know you see your involvement as an investment in your financial future and personal growth. We appreciate your feedback and support!
Billy Kennedy
4 months ago
Options Animal is the best! Because of the training and coaching 2025 was my best year ever! On my way to early retirement! The coaches are understanding and easy to talk too. I would refer my friends to the Options Animal Family
Response from the owner:Billy, thank you so much for the wonderful review and for trusting Options Animal with your training and coaching. We’re thrilled 2025 was your best year and that our coaches helped you move toward early retirement. Your referral of friends to the Options Animal family means a lot to us. We look forward to continuing to support you as you reach your next goals.
Scroll to Top