Married Puts: The FOMO-Proof Way to Play OVV, ONON, and FCX’s Unusually Active Options

Do you suffer from FOMO when it comes to the stock market? Are you guilty of buying trendy stocks at the absolute top only to see them crumble? 

Plenty of investors are. It’s a major reason behavioral finance remains an important subject for investors to study in their attempt to deliver better long-term returns.

The markets continue to set records amidst a rocky economic picture for everyone but the 1%. Yet, we all seem hell-bent on not missing out. 

My wife swears I’m 100% FOMO, especially when it comes to having fun. I can’t stand the idea of missing out on a good time. Strangely, despite my FOMO, I don’t feel that when it comes to stocks. I’ve never had an addiction to momentum; I doubt I ever will.

While looking at yesterday’s unusual options activity for today’s commentary, I got thinking about those who can’t resist buying into a momentum stock that’s up 200% in a year.

What can they do to lower the risk of buying at a potential top? Two words come to mind: Married Put. 

The options strategy involves purchasing underlying shares in a company you want to own and simultaneously buying one or more put options to provide downside protection. 

While long-term stockholders often use the married put, it can also be used to protect against an unexpected decline in the future share price. 

Here are three examples from yesterday’s unusual options activity where I believe a married put makes total sense. 

Ovintiv (OVV)

Denver-based Ovintiv (OVV) moved its HQ from Calgary in 2020. Since then, its shares have gained about 200%. 

The oil and gas producer generates most of its revenue from the Permian Basin in Texas and the Montney Basin in Alberta. Its revenues in Q2 2026 were $3.01 billion, 30% higher than a year ago. Its free cash flow margin was nearly 23%.

Analysts like it. Of the 25 covering OVV, 20 rate it a Buy (4.56 out of 5), with a $71.21 target price, 15% higher than its current share price. If you need an energy stock in your portfolio, OVV is a good one. 

Whether you’ve owned OVV since Ovintiv moved to Denver in 2020, or you’re thinking about it, the Oct. 16 $55 put is worth considering to protect against an unforeseen drop. 

As you can see below, the breakeven based on Thursday’s trading is $63.06. Your maximum loss is $8.06 [$55 strike price - $61.71 share price - $1.35 ask price]. You’re making money if the share price is above $63.06 in mid-October.  

On Holding (ONON)

On Holding (ONON), the Rafael Nadal-backed athletic footwear company, has gotten crushed this week. Its shares are down 21% since announcing its Q2 2026 results before Tuesday’s open. Investors didn’t like the 13% growth in the Americas, its largest revenue generator, which accounted for 53% of overall revenue. 

As a result of Tuesday’s dive, ONON is now down 52% from its January 2025 all-time high of $64.05. 

Why a married put in this situation? Why not a long call? I can think of several reasons, but here are two. 

First, the company’s long-term potential remains intact, despite the investor overreaction. It is doing the wise thing by maintaining full pricing on its products, thereby protecting its brand. It has significant new product launches in 2027. Maintaining full prices now ensures higher prices for those new products later. 

Secondly, analysts aren’t abandoning ship. Of the 24 that cover ONON, 19 rate it a Buy (4.46 out of 5), with a $47.04 target price, 53% higher than its current share price. Its stock trades at 20.4 times the $1.51 per-share earnings estimate for 2026. That’s low for a brand that’s expected to grow sales by 15-20% annually for the next few years. 

Here’s the June 17/2027 $47.50 call data in Thursday trading.

As you can see, the call is nearly 55% OTM (out-of-the-money), costing an investor $172 per call contract. While that’s not a high price to pay (5.61% of the share price), the likelihood of ONON’s share price being above $49.22 breakeven in 308 days is just 14.26%. The expected move is 29.48%, about half the gain needed to break even.  

So, let’s assume the share price increases by 29.48% at expiration next June. That’s $39.69 a share. You could sell the call before expiration and more than double your money [$39.69 future price - $30.65 current price * 0.2386 delta * 100 + $172], a 125% return. 

Under the Dec. 17/2027 $25 put shown earlier, your return would be 20.3% [$39.69 future share price - $31.01 current share price - $2.39 ask price * 100 / $31.01 current share price]. 

However, in dollar terms, your gain on the married put of $629 is 3.7 times the $172 cost of the long call. On the other hand, if the share price doesn’t move, the call buyer is out $172, while the married put still has a chance to make money beyond the expiration.   

Freeport-McMoRan (FCX)

Freeport-McMoRan (FCX)  is one of the world’s largest copper producers. Its stock is up 34% year-to-date and 10% in the past month. 

The gains came after its Q2 2026 results were released on July 23, and they were better than expected, with revenue of $7.03 billion, $320 million higher than Wall Street’s estimate, while its earnings per share were $0.74, nearly 20% higher than the consensus estimate. 

With copper prices up 36% in the past year to $6.17 a pound, FCX doesn’t have to work nearly as hard to deliver profits. That’s especially helpful given its Grasberg Block Cave mine in Indonesia continues to operate below capacity because of the mud rush that killed seven miners, halting operations for a time. 

CEO Kathleen Quirk said on July 23 that it expects the mine to be up to 65% capacity by the end of 2026, 80% by the middle of 2027, and fully operational by 2027. That will significantly add to top- and bottom-line results. 

As a materials investment, a top copper producer like Freeport-McMoRan is a wise choice. Almost every industry needs copper for one reason or another. Its demand won’t go away because of AI. 

That’s a big reason analysts like it. Of the 23 that cover it, 19 rate it a Buy (4.57 out of 5), with a $72.79 target price, above its current share price. Sure, it’s trading within dollars of its all-time high, but the future cash flow generation from its Indonesian mine in 2028 and beyond will justify a stock price above $72. 

As you can see above, FCX is down in Thursday's trading and is slightly further ITM (in-the-money) compared to yesterday’s closing data. As a result, the maximum loss has fallen from $735 to $597. Further, the breakeven percentage drops from 13.2% to 11.2%, and the probability of profit rises to 30.59%. 

If you bought FCX at the beginning of the year, this married put makes total sense.