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Finance Dictionary and Glossary of Investment Terms
Married Put
Definition 1.
An option strategy whereby an investor, holding a long position in stock, purchases a put on the same stock to protect against a depreciation in the stock's price.
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Definition 2.
A put option bought at the same time as its underlying securities in order to hedge the price paid for the securities.
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Definition 3.
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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