Protective put

A protective put, or married put,[1] is a portfolio strategy where an investor buys shares of a stock and, at the same time, enough put options to cover those shares.[2] In equilibrium this strategy will have the same net payoff as buying a call option.

See also

References

  1. "Married Puts". Retrieved 2016-11-02.
  2. "Equity Option Strategies – Protective Puts". Retrieved 2016-11-02.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.