Married Put¶
A married put is an options strategy combining 100 shares of stock with one put option on the same underlying, purchased simultaneously. The put guarantees the right to sell shares at the strike price through expiration, capping downside to a known maximum regardless of how far the stock falls. The risk profile mirrors a long call: limited loss, unlimited upside.
HOW IT WORKS¶
The position has three defining numbers:
- Maximum loss = (Stock Purchase Price − Put Strike) + Put Premium per share
- Breakeven = Stock Purchase Price + Put Premium
- Maximum gain = Unlimited; the put expires worthless as the stock rises
The put premium is the cost of insurance and creates a drag on returns if the stock moves sideways or higher. By put-call parity, long stock + long put is economically equivalent to a long call at the same strike plus cash equal to the present value of that strike. Common use cases include hedging concentrated single-stock positions, carrying a position through binary events such as earnings or regulatory decisions, and protecting appreciated shares without triggering a taxable sale. Key limitations: the premium is a real recurring cost, protection expires with the contract, and buying protection when implied volatility is already elevated means paying the highest possible price for the hedge.
IN TAPEBOARD¶
In the Tapeboard terminal, open the Options Chain panel for any equity and select a put strike alongside your share entry to preview the married put's maximum loss and breakeven in the P&L visualizer before placing the order. The Risk Dashboard flags married put positions separately from naked long stock, displaying the net cost basis (entry price plus premium paid) and the date the hedge expires. Use the Roll Alert feature to receive a notification before put expiration so you can decide whether to extend protection, close the position, or let the hedge lapse.