Protective Put

bullish1 leg

Also known as: Married Put

Long shares + buy put as downside hedge. Caps loss if the stock falls.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

Own 100 shares, buy a put beneath them. Whatever the stock does, you can sell at the strike — a floor under the position.

When to use it

Holding through earnings or a risky stretch when selling the shares is not an option (taxes, conviction, lockups).

What can go wrong

Insurance costs money — repeatedly buying puts is a persistent performance drag. Price the protection against the risk it removes.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.