Free Option Trading Tips                                                                                        Bookmark Option Systems

 

 

Married Put Option Trading Strategy

 

In the married put option trading strategy the trader buys a put option at the same time as buying the underlying stock of the put option. The simultaneity of these two transactions distinguishes the married put strategy from the protective put option trading strategy.

 

The number of put options purchased matches the number of the underlying stocks purchased. For example, if you buy 300 shares of a stock, then you would buy 3 put options to hedge your shares against a drastic fall.

 

 

Join Our Mailing List - Free Option Trading Tips
Email: