What is the difference between a married put and a put option?

A put option is in-the-money if the strike price is above the actual price of the security. A put option is out-of-the-money if the strike price is below the actual price of the security. Understanding these differences is helpful when learning how married puts work. What Is a Married Put?

What is the difference between a married put and a covered put?

A covered put is the opposite of a married put in that you are short the asset and short a put option in a covered put trade. With a married put, however, you buy the put and the asset at the same time. Is a married put a good strategy? A married put can be a good strategy if you want insurance on a new asset position.

What are the benefits of a married put?

The benefit of a married put is that there is now a floor under the stock, limiting downside risk. The floor is the difference between the price of the underlying stock at the time the married put was bought and the strike price of the put.