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Sarathi Research

23rd Nov · SEBI-Registered Analyst

“Protect Your Capital: How a Protective Put Works — BAJFINANCE Example”

📉 Stock Example: Bajaj Finance (

BAJFINANCE
) 📅 Early June 2025 💰 Price (historic reference): ~₹850 The Problem: Want to buy BAJFINANCE but scared of a sudden drop? The Hedge: ✔ Buy BAJFINANCE near ₹850 ✔ Add a Protective Put (e.g., ₹830 strike) Why This Works: 🔒 Your downside is capped 🚀 Your upside stays unlimited 🛡 Perfect for long-term investors who want safety without selling Takeaway: A protective put is your “safety net” — loss limited, growth unlimited.

#PersonalFinance#MacroViews#Miscellaneous
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