Protective put
BullishUnlimited profitLimited loss
Hold spot, buy a put as a floor — insurance with a cost.
Payoff at expiry — live BTC example
Net debit
$77,637
Max profit
Unlimited
Max loss
$1,437
Breakeven
77,637
Example legs (0.8 DTE front)
- Buy spot
- Buy 76,200 put
Entry greeks (per 1 BTC notional): Δ 0.837 · Γ 0.1397 per 1% · vega $8.87/pt · theta $-212.38/day
How it works
Long spot plus a long put: below the put strike the position stops losing; above it you keep spot upside minus the premium.
When to use it
You want to stay long through an event or drawdown risk you cannot watch, and will pay for the floor.
Risks & management
Insurance drag: repeatedly rolling puts is expensive and compounds. Buying protection after IV has spiked doubles the cost.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.