Long Put to Protect Long Futures

What this video covers

• Why a speculator who is long futures fears a decline, and how buying a put at or near the futures price builds a floor under the position
• The alias distinction between a protective put (put bought after the future) and a married put (both bought simultaneously), and why the exam tests both names
• How gains on the long put offset losses on the long futures below the strike, while the long futures keeps its unlimited upside if the market rallies
• Why long futures plus a long put mathematically equals a synthetic long call, and how to prove it by matching payoff structures
• The fatal exam trap of calling this combination a synthetic long put, and why that answer choice flips the original bullish direction
• The rule that the synthetic always keeps the futures leg's original market direction: bullish stays bullish, bearish stays bearish
• How to use the "feared move" method to pick the right insurance option every time, and how the two protective synthetics form a perfect mirror image