Married put

Article contents

At a glance

Setting up the strategy

You buy a put option and simultaneously purchase an equivalent number of shares of the same underlying stock.

When choosing the strike price, consider the following:

  • The further out-of-the-money the strike price is, the cheaper the premium will be. However, this offers you less downside protection when using this strategy.
  • The further in-the-money the strike is, the more expensive the option premium will be; as a result, this offers more downside protection when using this strategy.

Who should run this?

Ideal for all traders, from novice to advanced.

Margin requirements

Learn more about Questrade’s option margin requirements.

Strategy overview

A married put is an options strategy in which a trader purchases a put option while simultaneously buying an equivalent number of shares of the underlying stock. This protects the trader against the potential depreciation of the share price.

Market outlook

  • Bullish or bearish

Strategy benefits

  • Hold your stocks while insuring against any losses.

Strategy downsides

  • Reduces your profit due to the option premium paid on the put options.

Married put example


You purchase 100 shares of ABC stock valued at $26 per share. To protect yourself against the potential depreciation of the shares, you simultaneously purchase a $24 put option for $75 (0.75 option premium x 100 shares) with a 30-day expiration. Although your initial loss is $75, this also caps your total potential loss at $275 (26 - 24 x 100 + 75). 

As the buyer of the put option, you have the right to sell the stock at a $24 strike price before the option expiry date. 

Possible results

  1. ABC shares drop significantly over the next 30 days, dropping to $20, well below the purchase price of $26. In this case you would exercise the $24 put option on the expiration date to cap your loss at $275.
  2. ABC shares rise to $30 over the next 30 days, well above the strike price of $24. The put option expires worthless, but you could now sell your stock at the higher price and realize a profit. In this case, it would be 4.00 x 100 shares = $400), minus the option premium you paid. Your total profit would be $325.

Profit and loss explained

Maximum profit

  • Maximum profit = [(current stock price – original purchase price) x number of shares] – (option premium paid x number of option contracts x number of shares)

Maximum loss

  • Maximum loss = [(strike price - current stock price) x number of shares] + (option premium x number of contracts x number of shares)

Break-even at expiration

  • Break-even point = stock entry price + option premium

Sample calculations

  • Stock value at start of strategy: $26
  • To execute the strategy: Buy $24 put option for $75
  • Result: $75 net debit
Stock price at expiration Profit and loss calculations 
$20 $26 (original stock purchase price)
–$24 (put strike price)
x 100
$0.75 (option premium)
x 100 (number of shares)
= $275 loss
$28.50 $28.50(share price at expiration)
-$26 (purchase price)
x 100 (number of shares)
- $0.75 (option premium)
x 100 (number of shares)
= $175 profit

: commission fees are not included in the above calculations.

Payoff diagram

Creating a married put

Standard order details

Order detail


Symbol lookup field

Click  and change the mode to . Then enter the symbol you want to buy or sell. The default expiration date, strike price, and strategy appear. 

Tip: click the Option tab to view a more detailed option quote.

Modify the expiration date, strike price, and option strategy accordingly. For more information, see Elements of an option quote.

The buy or sell action is set for you when you select the strategy type.


Select a value using the arrows , or enter a value manually.

Note: by default, the quantity will be populated with the value set in your user preferences.
Order type Select the type of order you want to submit. When creating strategy orders, only Limit or Market order types are available. For more information, see Order types.

The limit order type requires you to fill in additional fields. Refer to the table section below for details.

Select a duration to specify how long the order should remain active. For more information, see Order durations.

Route Select a route or leave the selection at Auto to let the platform determine the best one. Canadian routes will be listed for Canadian symbols and U.S. routes will be listed for U.S symbols.

This field will be filtered according to the route selection. It indicates where you prefer the order to be executed. Leave the selection at Auto to let the platform determine the best route.

Note: sub-route selection is only available for Canadian symbols.
Order type-specific details
Limit price Enter your limit price:

  • To have the price fluctuate according to real-time data, select . The icon changes to a lock icon , which locks the limit price. Once locked, use the refresh button to automatically update your limit price.
  • To choose a custom price, select .
Note: if real-time market data is not available, the limit price will be blank and the float limit icon will be unlocked.

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