What are Married Puts in Options Trading?
Purpose Of Married Puts
To create a stock position with limited downside but unlimited upside potential.
Expectations of Married Puts
Bullish
Type of 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
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.
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
Break Even Point of Married Puts:
Breakeven = Initial stock price + cost of put options bought.
Advantages Of Married Puts:
Disadvantages Of Married Puts:
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