Married Put

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Married Put.

An options trading strategy designed to protect an investor from drastic drops in the price of a stock.  The investor, while holding a long position on a stock, purchases an at-the-money put option of the same stock to protect themselves against depreciation in the stock price.  This means that the investor can only lose a limited amount of money but still is able to reap gains from price appreciation.  The downside is that a premium must be paid on the put option, which is typically significant.