What is an AEX protective put index?

AEX Protective Put Index: This is a strategic index that combines a long position in the AEX index with the purchase of a 1-month, 5% out-of-the-money put option on the AEX index. This means that investors following this strategy hedge themselves against a possible decline in the AEX index by using put options. The put option offers protection against losses if the AEX index falls, while the investor can still benefit from increases in the index. This type of strategy is often used to limit downside risk without fully exiting the market.