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Options Glossary - Most Used Terms


Married Put and Stock

The simultaneous purchase of stock and the corresponding number of put options. This is a limited risk strategy during the life of the puts because the stock can be sold at the strike price of the puts.

See Also:

Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.

Stock: A share of a company's stock translates into ownership of part the company.

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