Married Put

The married put is as follows:

1. You first purchase shares in a stock and that stock could be something you already own.
2. A put option for the same number of shares will be added at the same time.
3. The goal is for the value of the stock to move up. Your profit total will increase so long as the stock goes beyond the strike price.

This is great for when you feel that a stock will go up but you want to watch for any brief losses that might happen within that stock. In fact, the losses that you might experience can be limited at this point. Because you are working with a put to go alongside a stock purchase, you are ensuring that the losses will be limited to a select total provided that the stock goes under the strike price at the end of the option. The married put also works well as a form of insurance against any cases where the asset might fall.