OPTIONS — POSITION PROTECTION
Protective Put / Married Put
Analyse owned shares and a purchased put as one position: protection cost, maximum loss, break-even and comparison with shares only.
Inputs
Field guide ↗The tool rejects a put that protects more shares than are owned. Partial coverage is allowed: extra shares remain exposed to downside.
The put reduces risk but has a certain cost: premium and commissions increase capital employed and the break-even price.
Tax is a simplified estimate applied only to positive displayed results. It does not model offsets, tax basis or option-specific tax rules.
The payoff refers to expiration. Before expiration, put value also depends on time remaining, implied volatility, spread, liquidity and other factors.
Protective Put summary
Protective Put vs shares only at expiration
The chart shows how the put limits downside and what the protection costs when the stock rises.
Protective Put
Shares only
Scenario comparison
| Share price | Protective Put | Shares only | Difference |
|---|
Protective Put vs stop loss
Enter a stop price to simulate the comparison.
The stop comparison is not a timing simulation: it compares two hypothetical economic outcomes at the same price. A stop may execute before expiration and can suffer gaps or slippage.