when to use a married put
rather than a pure profit making strategy a married put is a capital preserving strategy the downside loss potential is limited bear in mind that the premium paid for the put is a built in cost that reduces the strategy s savings potential therefore investors typically use a married put as an insurance policy against near term uncertainty in an otherwise bullish stock or as protection against an unforeseen price breakdown newer investors can benefit from knowing that their losses in the stock will be limited this can give them confidence as they learn more about different investing strategies of course this protection comes at a cost which includes the price of the option commissions and possibly other fees 