[Verse 1]
Sarah bought a hundred shares of Tesla stock today
Paid one-twenty each, her nest egg in the fray
But markets can be brutal, crash without a warning
So she bought insurance for a financial storming
[Pre-Chorus]
Put options are her safety net below
Strike price ninety, that's her floor you know
[Chorus]
Protective puts are portfolio shields
Lock in your losses, cap what panic yields
Pay the premium, sleep sound at night
Downside protected, upside takes flight
P-U-T spells peace of mind
Leave the market fears behind
[Verse 2]
Premium costs five dollars for each share she holds
Five hundred total for the peace it unfolds
Ninety days until expiration comes around
Her maximum loss is now mathematically bound
[Pre-Chorus]
Tesla falls to sixty, but she's safe and sound
Strike at ninety keeps her losses bound
[Chorus]
Protective puts are portfolio shields
Lock in your losses, cap what panic yields
Pay the premium, sleep sound at night
Downside protected, upside takes flight
P-U-T spells peace of mind
Leave the market fears behind
[Bridge]
If Tesla rockets to one-fifty high
She lets the put expire, waves goodbye
Keeps all the gains minus premium paid
Smart insurance, perfectly played
Stock goes up, put fades away
Stock drops down, put saves the day
Calculate your maximum loss
Premium plus strike, that's the cost
[Chorus]
Protective puts are portfolio shields
Lock in your losses, cap what panic yields
Pay the premium, sleep sound at night
Downside protected, upside takes flight
P-U-T spells peace of mind
Leave the market fears behind
[Outro]
Married puts and stocks unite
Insurance premiums, small price for sleeping tight
Floor established, ceiling free
That's protective put strategy