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 'married put', for 50.5c over, expires at the end of this week and a day after Monsanto's Thursday morning profit report.
Commenting on how "hot" Irish men are, Denise said: "I'm in a relationship but I still think Irish men are hot, I'm not married put it that way.
It's similar to the "married put" strategy, but more cost-effective and tax-efficient.
It is not clear whether a married put that falls within the definition of a tax straddle will be subject to the straddle rules (see Q 7698 to Q 7705), nor whether one that falls within the definition of a conversion transaction will be subject to the conversion transaction rules.
She added: "I'm very happy the way I am and I just worry that what if getting married put a huge weight on the relationship and it changed from that moment?
It is not clear whether a married put that falls within the definition of a tax straddle will be subject to the straddle rules (see Q 1077 to Q 1084), nor whether one that falls within the definition of a conversion transaction will be subject to the conversion transaction rules.
"Having to come out and admit he had sex with a lap dancer weeks before he got married put a big strain on things, even if Kerry did put a brave face on it and said she forgave him.