Protective Put on O'Reilly Automotive (ORLY)
A protective put on O'Reilly Automotive (ORLY) is a bullish with downside protection options strategy. A protective put on O'Reilly Automotive means holding 100 shares and buying one out-of-the-money put as insurance, capping downside below the strike in exchange for paying premium. Strikes below are illustrative, anchored to ORLY's real 86.53 USD price as of 2026-07-22 — not a live option quote.
Last updated 2026-07-22 · Source: FMP end-of-day close (real price); strikes illustrative, educational only — not a live option quote
How does a protective put on ORLY work?
A protective put on O'Reilly Automotive means holding 100 shares and buying one out-of-the-money put as insurance, capping downside below the strike in exchange for paying premium.
Outlook: bullish with downside protection. Real reference price: 86.53 USD (as of 2026-07-22).
How to set up the protective put (illustrative)
| Leg | Detail (illustrative) |
|---|---|
| Own | 100 shares of ORLY (real last price ~86.53 USD) |
| Buy | 1 put, illustratively ~5% OTM near the 82.2 USD strike |
Strikes are illustrative percentages of the real price, not live option quotes. Pick actual strikes and expiries from a broker's option chain.
Max profit, max loss and breakeven
| Max profit | unlimited above the price you paid, minus the put premium |
|---|---|
| Max loss | (share cost − put strike) + premium paid — downside is floored near the 82.2 USD strike |
| Breakeven | share cost + premium paid |
When to use it — and the risks
When: When you are bullish on ORLY but want a defined downside floor through an event or uncertain period.
Risks: The premium paid is a drag on returns; if ORLY rises the put expires worthless (its cost is the price of the insurance).
Related research pages
Frequently asked questions
What is a protective put on ORLY?
A protective put on O'Reilly Automotive means holding 100 shares and buying one out-of-the-money put as insurance, capping downside below the strike in exchange for paying premium.
How do you set up a protective put for ORLY?
Own: 100 shares of ORLY (real last price ~86.53 USD). Buy: 1 put, illustratively ~5% OTM near the 82.2 USD strike. Strikes shown are illustrative, anchored to ORLY's real 86.53 USD price as of 2026-07-22 — choose actual strikes from a live option chain.
What is the max profit and loss?
Max profit: unlimited above the price you paid, minus the put premium. Max loss: (share cost − put strike) + premium paid — downside is floored near the 82.2 USD strike. Breakeven: share cost + premium paid.
When should you use a protective put on ORLY?
When you are bullish on ORLY but want a defined downside floor through an event or uncertain period. Risks: The premium paid is a drag on returns; if ORLY rises the put expires worthless (its cost is the price of the insurance).