Protective Put on Summit Therapeutics (SMMT)
A protective put on Summit Therapeutics (SMMT) is a bullish with downside protection options strategy, anchored to SMMT's real 17.55 USD price as of 2026-09-11. See how it works, an illustrative strike setup, and max profit/loss/breakeven below — not a live option quote.
Last updated 2026-09-11 · Source: FMP end-of-day close (real price); strikes illustrative, educational only — not a live option quote
How does a protective put on SMMT work?
A protective put on Summit Therapeutics 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: 17.55 USD (as of 2026-09-11).
How to set up the protective put (illustrative)
| Leg | Detail (illustrative) |
|---|---|
| Own | 100 shares of SMMT (real last price ~17.55 USD) |
| Buy | 1 put, illustratively ~5% OTM near the 16.67 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 16.67 USD strike |
| Breakeven | share cost + premium paid |
When to use it — and the risks
When: When you are bullish on SMMT but want a defined downside floor through an event or uncertain period.
Risks: The premium paid is a drag on returns; if SMMT 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 SMMT?
A protective put is insurance on a SMMT position — you hold the shares and buy a put so losses are floored below the strike, at the cost of the put premium.
How do you set up a protective put for SMMT?
Hold 100 SMMT shares and buy 1 put near a strike about 5% below the current 17.55 USD price. Treat 16.67 USD as an illustrative anchor, not a live quote — check a real option chain for actual strikes.
What is the max profit and loss?
Upside stays open (minus the premium paid); downside is floored near the put strike once the insurance kicks in.
When should you use a protective put on SMMT?
Best when you're bullish on SMMT over the longer term but want a defined floor through a specific event or stretch of uncertainty.