• The spousal put option strategy protects the investor from a sharp drop in the price of the underlying stock.

  • The cost of the option can make this strategy prohibitively expensive if used frequently.
  • Put options vary in price depending on the volatility of the underlying stock, the strike price versus the stock price, and time to expiration.
  • The strategy can work well for stocks with low volatility when investors are concerned about an unexpected announcement that could negatively affect the share price.
  • Long-term investors probably don’t want married puts because they don’t have to worry about short-term price fluctuations.