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Married Puts for Beginners: Options Learning Center
Description
The married put strategy provides downside protection while still being able to profit from an appreciation in the price of the underlying security.
The married put option strategy involves purchasing underlying shares and simultaneously purchasing an equivalent number of put options. The cost of the shares and the premium paid for the long put(s) together are the Net Debit. The maximum loss is the difference between the Net Debit and the strike price of the put.
The married put strategy succeeds if the underlying security rises by the cost of the put option(s). The maximum profit is unlimited, as a security can theoretically rise indefinitely.
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