New to option trading, trying to create a protective put (cont)

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Options are a contract of 100 shares each. You cannot but an option for 42 shares. It would cost you $1,196 for the out option in your case but that would be against 100 shares, so you would actually MAKE money if SPY dropped as you are only long 42 shares.

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Took a class on portfolio management and financial derivatives which gave a basic intro to options. This is where I learned about protective puts, which I want to look into executing on my current portfolio.

So for example, let’s say I own 42.44 shares of SPY at a basis of $246.09. I want to buy a protective put that would cover me till 5/1/2020 since I think that is when we will have more clarity on what the future holds on coronavirus and social distancing.

Would I just buy the put option with the closes strike price to my basis of $246.09? And would I buy one option for each share I own? So since SPY 5/1/20 $246 strike put is currently trading at $11.96 per option * 42 shares that would be $502.32 to execute the entire position?

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