Index XYZ is between the strike price of 96 and breakeven point at expiration
XYZ Index at 100
Buy 200 XYZ 96 Puts at $0.75 

The investor’s portfolio had a value of $2 million when it was insured with the 200 protective puts, when the level of index XYZ was 100. The upside breakeven point for this position would be a portfolio value equal to its value when insured, or $2 million, plus the $15,000 cost of the puts, or a total of $2,015,000. As long as the portfolio exactly tracks the performance of index XYZ, the breakeven point would be reached with an increase in XYZ of 0.75% to 100.75. The expected increase in portfolio value of the same 0.75% would be $15,000, or an amount that would exactly cover the original cost of the puts.
If at expiration index XYZ closes at any point between 96, the put strike price, and the breakeven point of 100.75, the investor would incur a partial loss on the position. Say XYZ closes down 1% at a level of 99, and the protective puts expire outofthemoney and with no value. With this decline of 1% in XYZ the investor’s portfolio could be expected to see a corresponding 1% loss of $20,000, less than the maximum. Added to this loss would be the $15,000 premium paid for the puts.