Hello all, I have a couple of questions I was hoping you guys could help me with. I have tried searching for it but I can't really seem to find specific answers to what I'm wondering about. I'm currently working on a strategy for stocks and got it working pretty well for the most part. Now I'm trying to optimize my profit ratio by hedging with protective options. Basically what I'm trying to figure out is what the total cost of a protective option is, and whether it is worthwhile to hedge with an option or not. Say I want to buy 100 CSCO stock at current price $18.20 and hedge it with a long put option for december 21 with a strike price of $18.00. The last traded price of that option is $0.42 so the maximum loss I'd see on that trade would have been $42? On the other hand a long call, with the same strike and date, is trading at $0.47, so a total loss here would be 0.47-0.20 = 0.27, or $27 (for the option only)? If this is the case, why would I want to buy stocks and a protective put when I could just buy a call ? If my average loss per trade is $43 (not including commissions to make it simple), would it be wise to just hedge with an option, and save myself $1 ? Or keep it simple and just buy a call ? I'm very new to options so I'm sorry if I have made some very obvious mistakes here.