yes. its the most ignored simple way to protect or keep gain and limit losses. If ;you buy 1000 shares of ice at 108 and want to insure no loss less then 100 go to the options chart on yahoo finance on the left of ice and click it on. You pick the next month and a price of 100 under puts. The chart will tell you the cost of the put. 1000 shares is 10 contracts. one contract is 100 shares. call your broker or do it online and buy any level of protection for as long as you want . No matter what if you wake up and ice is 20 overnight on a gap down you are protected under 100 your put is now worth 80 dollars more. hope it helps
no but not losing a ton or like some more than 60% in ice. Ice was 190 plus. A 190 put would have cost 10 bucks but saved all the downside as you took profits on the way down and lowered the strike p;rice. but no i wish i sold at 190 and paid the tax.