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Married Put Strategy |
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Married put strategyThe simultaneous purchase of stock and put options representing an equivalent number of shares. This is a limited risk strategy during the life of the puts because the stock can always be sold for at least the strike price of the purchased puts.Married Put StrategyA put and stock are considered to be married if they are bought on the same day, and the position is designated at that time as a hedge.Married Put Strategy Similar MatchesEquivalent strategyEquivalent strategyAn options strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread. Spread strategySpread strategyA strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called spreading. Dedication strategyDedication strategyRefers to multiperiod cash-flow matching. 90/10 strategy90/10 strategyThe total number of shares a company is authorised to issue by reference to its memorandum and articles of association.The amount of issued share capital must be lower or equal to the authorised share capital. i.e. a company cannot issue more shares than it is authorised to issue in its Articles. Covered call writing strategyCovered call writing strategyA strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies. Further SuggestionsBuy and hold strategyOutward oriented strategy Lady Macbeth Strategy Structured portfolio strategy Overlay strategy Financial strategy Passive portfolio strategy Duration matching strategy Protective put buying strategy Strategy Tax Reduction Strategy Ratio Strategy Ladder strategy Combination strategy Protected Strategy Time spread strategy Horizon matching strategy Import substitution development strategy Passive investment strategy Buy and write strategy |
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