Choosing an Option Strategy for Loss Limitation

Emma is considering a strategy to protect her portfolio from a potential decline in a stock she owns, XYZ Corp, which is currently trading at $100 per share. To hedge her position, she examines the possibilities of using options.

Emma finds that she can purchase put options with a strike price of $95, expiring in three months, for a premium of $3 per option. She believes this will allow her to limit her losses if the price of XYZ Corp decreases significantly.

After careful analysis, Emma also looks into other strategies involving call options. Specifically, she reflects on a covered call strategy, which involves holding the stock while simultaneously selling call options to generate income. She considers the implications of this approach on her overall investment strategy.

What option strategy should Emma implement if her primary goal is to limit her losses on XYZ Corp while still maintaining some upside potential?