Risk Has a Shape
A stock position and an illustrative protective put create different downside shapes. Protection has a premium, and trade-offs remain visible.
What this video explores
A stock position and an illustrative protective put create different downside shapes. Protection has a premium, and trade-offs remain visible. The narration connects the illustrated concept to the Fidusor research workflow. The physical animations represent research concepts; they are not live market data or forecasts. The illustrative position buys 100 shares at $100 and a $95 protective put for $2 per share. At expiry, the maximum loss is $700 and the break-even stock price is $102, excluding fees and dividends.
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Transcript
The same stock can have a different risk shape.
A protective put can limit the downside.
That protection comes with a premium.
Compare the possible outcomes and the cost.
Explore trade-offs in Fidusor Strategy Desk.
Research the shape before the trade.