Iron Condor

Protective put

Long stock plus a long put on the same underlying at a chosen floor strike. Insurance against a drop in the stock; cost is the put premium. Payoff at expiration is identical to a long call at the same strike (put-call parity), with the floor sitting at strike minus premium paid.

See also

Learn it in context

Every term here appears inside the lessons and the simulator in the app, shown in use.

Get the app