Emini: You are right in that you save premium if you get out at a stop loss placed at the strike price of the put. But I was thinking of buying a put option only because the stock has a high volatility (large beta). I do not want to sell, buy, and sell… again…I guess, I am looking for a little longer term (3+ months). You could be right—buying a put could be totally unnecessary. I am planning to get into trading options after few months when I feel more comfortable and when I will have some money to risk: D (poor student).