The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the best way to use protective put options. And the best way to use protective put options is actually not to use them at all. How about that? That's actually a little bit of a reversal from the title. But look. The reality is that when we go back through and back-test put buying strategies and specifically like single long put buying strategies, there is no put buying strategy that actually is better than just not using a put buying strategy. Yes, there's probably certain time periods during a market crash where using protective put options works for a very small zoomed in time of reference, but the problem with that is that we never actually go through a market situation where you know exactly when you need to use that put protection buying strategy and when not to use it. The one microscopic time that a put buying strategy would actually work and help the portfolio is almost im