married put

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Married put

A put option bought at the same time as its underlying securities in order to hedge the price paid for the securities.

Married Put

A strategy to reduce or eliminate the risk of price depreciation on a stock by buying a put option on that stock. When an investor owns a stock and is concerned about price depreciation, he/she may buy a put option, giving him/her the right but not the obligation to sell the stock at a relatively high strike price on or before the expiration date. If the price does depreciate, the investor exercises the option and sells the stock to cover losses and perhaps make a profit. If the price appreciates instead, the investor simply lets the option expire and may keep the stock or sell it at the higher price. A married put may be thought of as insurance against price depreciation.

married put

A put and stock that are purchased at the same time so that a hedge position can be established. This purchase provides the investor with unlimited upside potential, with the put acting as insurance against losses from a declining stock price. See also protective put.
References in periodicals archive ?
The ability to trade stocks, options, futures, spreads, combos, straddles, covered calls, and married puts
These include the covered call, the naked and the married puts, collars, straddles, vertical spreads, calendar spreads, butterflies, condors, and more.
In addition, clients can trade spreads, straddles, strangles, buy/writes, married puts and combos, as well as simple option and stock trades.
Stock's online trading arena enables complex strategies like spreads, straddles, buy/writes, and married puts.
In addition, the simple screens makes it easier for options traders to enter spreads, straddles, buy-writes, married puts, ratio spreads, or contingent option orders.