How to select a protective put....

[KohPhiPhi]

Your best protection would be a strike near your basis. Buy enough Put Delta to match your long shares. If the 155 strike put has 50 delta, buy 4. If the stock price falls your basis will be protected. If it falls far enough your insurance will start to gain ground against the long shares because of gamma. Plus you are long volatility which may also gain value.
What is your forecast? Seems to me like you are sending mixed signals

Hey LanceJ, I find your post most interesting!

Mind if I ask 3 questions?

Buy enough Put Delta to match your long shares. If the 155 strike put has 50 delta, buy 4.

This is fascinating. I would assume that buying 4 Puts would necessary if he intended to sell/roll the long Put before expiration in order to keep the option price locked with the stock price. However, if he just seeks protection by exercising at expiration, then buying 2 Puts would be enough to cover his basis?

Plus you are long volatility which may also gain value.

Could you explain what "being long volatility" means, please?

What is your forecast? Seems to me like you are sending mixed signals

Could you explain how he is sending mixed signals please? I mean, he is looking to get downside protection on his stock position, regardless of whether his forecast is inherently bullish or bearish. Mind filling in the gaps for me please?

Thank you very much in advance!