Married put

A married put is buying 100 shares of a stock and simultaneously buying 1 put option as downside protection , the two legs are entered as a single trade. Mechanically it's identical to a protective put; the only difference is that the stock and put are opened together rather than the put being added later to existing shares. The payoff is identical to a long call.

Bias: Bullish with defined downside Risk profile: Defined max loss (stock cost − strike + premium), unlimited upside Ideal conditions: New stock entry where you want full upside but a hard floor, ahead of a binary event

How it's constructed

• Buy 100 shares of the underlying
• Buy 1 put option at the same time, typically ATM or slightly OTM
• Total cost = stock price × 100 + put premium × 100

Setup example

You want to buy NVDA at $480 ahead of earnings. You buy 100 shares at $480 and simultaneously buy the $470 put for $8.

• Stock cost: $48,000
• Put cost: $800
• Total outlay: $48,800
• Floor price: $470 − $8 = $462
• Max loss: $480 − $462 = $18 per share ($1,800)
• Upside: Unlimited above breakeven of $488

Max profit, max loss

Married put vs long call

The married put has the same payoff shape as a long call at the same strike. The trade-off:

Use a married put when you want the stock for dividends, voting, or long-term holding, but need the put as short-term insurance. Use a long call for pure directional exposure with less capital.

When to use a married put

Best conditions:

• Initiating a new stock position with a known near-term risk event
• You want stock ownership benefits (dividends, voting, long-term holding)
• IV is reasonable so the put premium isn't excessive

Related terms: Protective put, long call, put option, hedging, synthetic call

Try it on Stryke: Use the Options Screener to price puts at your target strike and expiration.

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