Married Put or Protective Put strategy in Options trading in Stock market #shorts #krinu

in a Married put Strategy the Investor buys one ATM (At The Money) put option simultaneously for the stock he holds or against his Long position in a stock , if his bet in the Put option is correct he can exercise his Right to sell the agreed amount of shares @ the strike value in-spite of the Current Market price is lower , Hence the Loss of the seller is Strike value - CMP - The premium he received

on the flip side in this Married or Protective Put strategy, if the stocks price is above the Strike value at Expiry l the Buyers Loss is the premium he had paid to the seller, but the trade off here; for this case is ; the investors long position will fetch him profits due to the rise in the stock price this can offset the loss he incurs in the Put option he had purchased.

this strategy protects the Buyer of any adverse drop in the stocks price which he holds; hence this is also called as Married Put or Protective Put
Join this channel to get access to perks:
https://www.youtube.com/channel/UCLlvV6YwZnF6wLGBQuOyTcg/join

Видео Married Put or Protective Put strategy in Options trading in Stock market #shorts #krinu канала Krinu