Protective puts break down in High IV environment.

[ajacobson]

Ratio spreads to both sides of the market - assuming the account is suitable. The second side would have no requirement and may trade near flat.

Not perfect and not riskless.

 

[wxytrader]

What do you mean protective puts don't work? When the prices are inflated, the put prices should be very cheap since put prices are inversely related to its underlying prices. When the undie drops in value, put prices go up and that's how puts protect you against losses. Can you give a specific example to illustrate how they don't work?

Do risk profile charts take that into account? The delta will be increasing as the price gets closer to itm.

I was messing around with it here:
https://optioncreator.com/st3ul40

At $20 I'm losing the same money with or without the put.

 

[ajacobson]

Looked at what you posted, but it doesn't approach what I outlined - your payoff doesn't approach what I outlined and is simply a synthetic call option, but good luck.

 

[wxytrader]

Looked at what you posted, but it doesn't approach what I outlined - your payoff doesn't approach what I outlined and is simply a synthetic call option, but good luck.

Yeah like I said it doesn't do any good. ??

 

[taowave]

Great minds think alike..I too noticed his obscene like to post ratio..

do you have the highest like to post count on this site?

 

[MrMuppet]

I once met a stripper at the penthouse club in NYC ...

That´s how basically all good stories begin, my friend

 

[MrMuppet]

Great minds think alike..I too noticed his obscene like to post ratio..

but what does it even mean?