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.
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Related terms:
uncovered put
'married put' appears in these other terms:
married put strategy
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