Bullish Patterns
Long Calls
Bull Call Spread
Bull Put Spread
Call Backspread
Long Call Ratio Spread
Naked Put
Synthetic Long Stock
The Collar
Covered Calls
Synthetic Long Call
Synthetic Short Put
Covered Straddle
Covered Strangle
Married Put
Protective Put

Bearish Patterns
Long Puts
Bear Put Spread
Bear Call Spread
Put Backspread
Long Put Ratio Spread
Naked Calls
Synthetic Short Stock
Synthetic Short Stock (split strikes)
Covered Put
Protective Call
Synthetic Short Call
Synthetic Long Put

Long Volatility
Long Straddle
Long Strangle
Short Call Butterfly
Short Put Butterfly
Short Iron Butterfly
Short Call Condor
Short Put Condor
Short Iron Condor
Long Guts
Short Call Ladder
Short Put Ladder
Long Call Synthetic Straddle
Long Put Synthetic Straddle

Short Volatility
Short Straddle
Short Strangle
Long Call Butterfly
Long Put Butterfly
Long Iron Butterfly
Long Call Condor
Long Put Condor
Long Iron Condor
Short Guts
Long Call Ladder
Long Put Ladder
Call Ratio Spread
Short Call Ratio Spread
Put Ratio Spread
Short Put Ratio Spread
Ratio Call Write
Ratio Put Write
Short Call Synthetic Straddle
Short Put Synthetic Straddle
Variable Ratio Write

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Married Put

Risk: limited
Reward: unlimited

General Description
Entering a married put entails buying puts and buying the underlying stock at the same time. It's the same as a protective put except you don't already own the stock. Also, it has the same risk profile as a long call, so it's considered a type of synthetic long call.

(draw a married put risk diagram here)

The Thinking
You want to buy a stock because it's paying a dividend soon, but you want some downside protection just in case it drops. You buy the stock and buy puts for insurance. If the stock rallies, you keep the stock and lose the premium paid for the puts. If the stock drops, you have some downside protection.

XYZ is at $50. You want to buy the stock but are weary of a move down because the overall market is weakening. You buy 100 shares of the stock at $50 and then buy (1) 50 put for $3.00 for some downside protection. You hope the stock moves up, but if it happens to move down, you have some protection.

If the stock closes above $50, the puts expire worthless, and you’re out the net debit. At least you keep the stock and benefit from ownership (stock appreciation, dividends etc.)

Below $50, the loss from the stock will be countered by a gain from the long put. Your loss is capped at $3, the put premium paid.

The PL chart below graphically shows where this trade will be profitable and at a loss.