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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (2087)6/11/2001 11:16:18 PM
From: Howard R. Hansen  Read Replies (2) | Respond to of 2241
 
What does the term "short put" mean?



To: Mama Bear who wrote (2087)6/12/2001 1:19:12 AM
From: LKO  Respond to of 2241
 

Interesting, a broker I dealt with back in the '90s used to call short common/short put 'married' puts.

The option strategy guide from Options Industry Council (link in previous post) defines a "married put" as a put you buy along with the stock to protect the down side. (Claims origin of the term in an IRS ruling). If you buy the put after having owned the stock, it is only a "protective put".


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