What is the max profit of a protective put?

Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.

What is the max loss of a protective put?

Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.

How do I calculate a protective put's profit and loss?

Open the protective put in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Protective put calculator

Bullish with a floor. Own shares and buy a put as insurance.

Open in the calculator All strategies

OutlookNeutral

Max profitUnlimited

Max lossLimited

LevelNovice

What is a protective put?

A protective put keeps unlimited upside in the stock while the long put caps downside below strike A. You pay a debit for that floor, so the stock must rally more to break even.

Legs

Own the underlying
Buy a put at strike A

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net debit$1,618.00

Max loss$1,671.50

Max profitUnlimited

Chance of profitLocked: ProUpgrade

BreakevenAbove $771.71 (+2.1%)At expiration

755P+112/18 · $16.18
Long 100 shares at $755.53

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): own 100 shares at $755.53 and buy 1 755 put. Net debit $1,618. Max profit unlimited; max loss $1,671.50. Breakeven at expiration: Above $771.71 (+2.1%).

Open this protective put in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a protective put?: A protective put keeps unlimited upside in the stock while the long put caps downside below strike A. You pay a debit for that floor, so the stock must rally more to break even.
When does a protective put make money?: Bullish with a floor. Own shares and buy a put as insurance.
What is the max profit of a protective put?: Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.
What is the max loss of a protective put?: Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
How do I calculate a protective put's profit and loss?: Open the protective put in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.