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Keywords:
Underlying,
Implications,
Strategy,
Option,
Stock
The purchase of a put option on a stock that is already owned. A married put...
A put option bought at the same time as its underlying securities in order to hedge the price paid for the securities.
a strategy in which one owns an option to sell a security on a specific date at a predetermined price, while simultaneously purchasing the underlying security
Is the purchase of a put and its underlying stock at the same time. Effectively, it behaves like a synthetic long call but can have different of special tax implications.
The purchase of a put option and the underlying stock on the same day. Special tax rules apply if the put expires.
An option strategy whereby an investor, holding a long position in stock, purchases a put on the same stock to protect against a depreciation in the stock's price.
A married put is formed when an investor buys shares of a stock and at the same time, a put option contract. The married put has the benefit of "insuring" a stock; that is, in the event of falling prices an investor can be sure of a favorable, exact exit price. If the protected stock rises, the investor is under no obligation to sell.
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