married put

Definition

The purchase of a put option on a stock that is already owned. A married put protects against a decline in the price of the underlying stock. If the price declines, the stock can be sold at the higher price any time before expiration. Of course, if the stock price remains neutral or increases, the option is worthless and the premium is lost.



  print this definition
  cite this definition
  link to this page

Related terms:

uncovered put

'married put' appears in these other terms:

married put strategy

Related Research Articles from the InvestorGuide.com University

Options
Learn about call and put options, the components of an options contract, how to value and price options, and what the advantages and disadvantages of options to help you decide if they are the right investment for you.

Principles of Investing
Here are the seven fundamental principles of investing that every investor should know. Topics include knowing your current situation, goals and risk tolerance; getting your finances in order; thinking long term and focusing on stocks; researching and monitoring your investments; and knowing when and how to get financial help.

Buying and Selling
Learn the best time to buy or sell an investment. Also suggests templates for investment analysis and transaction records.


Featured Sponsor

Give this definition a rating from 1 to 5 (5 being the best)...
1    2    3    4    5    



Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Add this Glossary to your Site | Bookmark InvestorWords.com | RSS Feeds
Home | Terms by Subject | Keyword Advertising | About Us | Contact Us
Work for InvestorWords.com
BusinessDictionary.com | InvestorGuide.com | WebFinanceInc.com
Disclaimer and Copyright©

Copyright©1997-2008 by WebFinance, Inc. All Rights Reserved.
Unauthorized duplication, in whole or in part, is strictly prohibited.