I just thought about the idea of buying 1 contract of the E-mini S&P and buying 1 options put contract. I believe I have the following correct:

EX:

Buy 1 underlying contract at 1150

Buy 1 put options contract at 1150 minus 5 point premium

If the underlying goes up 50 points then a profit of 45 would be made after put premium.

If the underlying goes down then I am protected by the put and will close out underlying when put contract expires and the result would be about break-even.

Is this a correct assessment of how this works? I just watched a video on CME futures options and the light bulb went off in the old head.

EX:

Buy 1 underlying contract at 1150

Buy 1 put options contract at 1150 minus 5 point premium

If the underlying goes up 50 points then a profit of 45 would be made after put premium.

If the underlying goes down then I am protected by the put and will close out underlying when put contract expires and the result would be about break-even.

Is this a correct assessment of how this works? I just watched a video on CME futures options and the light bulb went off in the old head.