Your uncle owns 10,000 shares of Walmart stock. He is concerned about the shortterm outlook for Walmart’s stock due to an impending “major announcement.” This announcement has received much attention in the press, so he expects the stock price will change significantly in the next month but is unsure whether it will be a profit or a loss. He hopes the price will increase, but he also doesn’t want to suffer if the price were to fall in the short term. He is optimistic about Walmart’s long term prospects, so he does not want to sell his shares, but he is willing to consider an option strategy that would protect him from downside risk over the short term.