An investor purchasing a put while at the same time purchasing an equivalent number of shares of the underlying stock is establishing a "married put" position – a hedging strategy with a name from an old IRS ruling.

An investor purchasing a put while at the same time purchasing an equivalent number of shares of the underlying stock is establishing a "married put" position – a hedging strategy with a name from an old IRS ruling.

The covered call is a strategy in which an investor writes a call option contract while at the same time owning an equivalent number of shares of the underlying stock. This strategy is the most basic and most widely used strategy combining the flexibility of listed options with stock ownership.

The covered call is a strategy in which an investor writes a call option contract while at the same time owning an equivalent number of shares of the underlying stock. This strategy is the most basic and most widely used strategy combining the flexibility of listed options with stock ownership.

A long put can be an ideal tool for an investor who wishes to participate profitably from a downward price move in the underlying stock.

An overview of the risks and rewards associated with buying protective puts.

Purchasing calls has remained the most popular strategy with investors since listed options were first introduced. Before moving into more complex bullish and bearish strategies, an investor should thoroughly understand the fundamentals of buying and holding call options.