Options trading strategy: Married Put
Use married put strategy when you own stocks and is profitable. You can lock the profit buy buying a put option for the same. This way you can ensure that you can sell the stock at the strike price if the stock goes down or you can participate if the stock value goes up.
Example : You bought shares of company XYZ at Rs.45.00 at one point stock reached Rs.90.00 . You want to lock the profit at 90.00. You will buy a put at the strike price of 90.00. If the stock goes up you will only lose the premium paid
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