A protective put is an investment strategy used to guard against potential losses in a stock position. It involves purchasing a put option for shares you already own. This put option gives you the right to sell your shares at a predetermined price, known as the strike price, within a specific time frame. If the stock price falls below the strike price, the put option can help limit your losses. Investors often use protective puts to manage risk while still holding onto their stocks. This strategy allows them to benefit from potential price increases while having a safety net in case of a downturn. By paying a premium for the put option, investors can protect their investment without selling their shares.