# Protective Put

*Derivatives & Options — Finicade finance glossary*

Holding a stock and buying a put on it as insurance — the put caps your downside while you keep all the upside. Like any insurance, the premium is the price of that peace of mind.

**Related terms:** [Put Option](https://finicade.com/glossary/put-option), [Hedging](https://finicade.com/glossary/hedging), [Covered Call](https://finicade.com/glossary/covered-call)

**Taught in:** Hull Street — Trading Strategies with Options

Source: https://finicade.com/glossary/protective-put