Analyzing a Protective Put Strategy for Alpha Corp

Assume you are a portfolio manager at a mid-sized investment firm. Your client desires to hedge against potential declines in the price of a publicly traded company, Alpha Corp, whose current stock price is $100. The client is particularly concerned about the short-term volatility due to an upcoming earnings announcement. In order to mitigate this risk, you consider employing a protective put strategy using options.

Based on the above scenario, outline the protective put strategy you would use, including potential advantages and disadvantages. Additionally, discuss how this strategy might be adjusted should the stock price reach $85 before the earnings announcement. Finally, analyze the implications for the client's portfolio if Alpha Corp's stock price unexpectedly increases to $110 following the earnings announcement.