What is married?

is the purchase of stock position and accompanying ways to protect against price drop. Insert options allow investors to sell shares for a pre -rewritten price for a given expiration date and locking at the selling price. If the value of the shares decreases, the investor can use higher selling prices and apply the possibility. If the stock increases at the price listed in this option, the investor can hold them and sell them later for higher profit.

This investment strategy can create a loss floor. It is a way to reduce the possibility of receiving a severe loss of investment. Investors can use married when the market is uncertain. Possibilities allow people to take positions and reduce the risk and protect their investments. Institutional investors and individuals can participate in various options shops to meet their needs and isolate their portfolios before losses.

The creation of a marriage contract begins with the introduction of a strike price, an agreed selling price of shares. Investors also decide to expandof the expiry date and registered the contract. If the investor needs to apply this possibility, shares can be sold at the strike price on the specified date, even if it is higher than the business price. If the value of the shares rises, the possibility expires without being applied. This means that the investor is the cost of the option, but the increased profit from the underlying investment will replace it.

shares and possibility can be traded separately on the secondary market. The investor could decide, in view of the price increase, sell shares before the date of expiration of the option to take advantage of the potentially high -profit transaction. Similarly, it is possible to sell the PUT option if the investor feels that this is no longer necessary. This flexibility with married PUT can create liquidity for the investor and ensure that the means are accessible if necessary in a hurry.

Using married Put allows the investor to take what is known as a long position with shares. This means that the investor knows that it is possible to keep owners for a long timeHe knows the shares to see if the values ​​grow without risking loss. If the value drops, the investor has until the expiration date to decide whether to keep the shares or sell and leave the position.