Finance:Protective put

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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". http://www.poweropt.com/marriedputhelp.asp. 
  2. ↑ "Equity Option Strategies – Protective Puts". http://www.cboe.com/Strategies/EquityOptions/ProtectivePuts/part1.aspx. 




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