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Married Puts Profile Version / Simplified Version / Comprehensive Version
Married Put Discussion Married Put Discussion   |   Find Similar Risk Profiles Find Similar Risk Profiles



Purpose Of Married Puts

To create a stock position with limited downside but unlimited upside potential.


Expectations of Married Puts

Bullish


Type of Spread

Debit Spread


How To Use Married Puts

Buy to open 1 contract of at the money put options for every 100 shares that you own.

Buy ATM Put 		Married Put Risk Graph Learn How To Read This Chart


Profit Potential of Married Puts :
Married Puts is an option trading hedging strategy which, combined with the underlying stock, grants unlimited maximum profit as long as the underlying stock continues to rise.

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Profit Calculation of Married Puts :

Profit = (stock price - put strike price - cost of put) x number of shares


Risk / Reward of Married Puts:

Upside Maximum Profit: Unlimited

Maximum Loss: Limited


Break Even Point of Married Puts:

Breakeven = Initial stock price + cost of put options bought.


Advantages Of Married Puts:

  • Allows you to hold on to your stocks while insuring against any losses.


    Disadvantages Of Married Puts:

  • Cost of the put options eats into profit margin.


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