Quote from optioncoach:
If you are talking about long-term holding, then adding long puts to your stock positions after significant moves will lock in a profit while still allowing for upside room until expiration. If you use longer-term puts, the cost is higher but you get nice long-term protection.
If you are talking about 2 or 3 day swing trading, then current month puts would work only if you had a nice large move. In other words if XYZ jumped from $50 to $60, you could then buy $60 strike puts in the current month and let the position run a little longer. For smaller moves, the puts will eat too much into the profits and is not worth it.
