Protective Put vs Strike Price

A risk management strategy combining a long spot position with a purchased put option on the same asset; the put limits downside exposure below the strike price while preserving full upside above the strike minus the premium cost; the most defensible use of options for portfolio protection.

The fixed price at which the holder of an options contract has the right to buy (call) or sell (put) the underlying cryptocurrency asset; also termed exercise price; determines moneyness (in-the-money, at-the-money, out-of-the-money) at any given moment.