Married Put and Stock

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Married Put and Stock

A situation in which an investor buys a put while holding an equal position on the underlying asset. That is, an investor has a married put and stock when he/she buys a put and either buys or already owns the underlying asset. If the underlying asset increases in price, the investor allows the put to expire worthless. If it goes down in price, the investor can exercise the put and sell the underlying asset at the (higher) strike price. A married put and stock limits the investor's risk.