Married put

A married put, or protective put, is a portfolio strategy where an investor buys shares of a stock and, at the same time, enough put options to cover those shares.

The term "protective put" highlights the use of this strategy as a hedge, or insurance, on the invested stock. The buyer of a put protects himself from a ducking drop in the stock price below the strike price of the put. In the event that the put is not exercised (because the stock price is above the strike price), the buyer has lost only the premium he paid for the put.