Understanding the Protective Put Strategy in Options

Imagine you are a portfolio manager looking to protect your investment in a volatile tech stock. You believe that the stock's price is likely to experience significant fluctuations in the upcoming months but expect it to rise over the long term. To mitigate the risk of short-term declines while maintaining the potential benefits of ownership, you decide to implement a protective put strategy.

Explain what a protective put strategy is, how it works, and describe the potential benefits and risks associated with using this option strategy in your investment approach.