Wheel2 legsdebitbullish

Own shares and buy a put beneath them. Insurance on a holding — a known cost for a known floor, with the upside left intact.

The Strategy Builder does not construct this one — the reference shelf is broader than the picker. You can still build it by hand: add the legs below in the builder's leg table.

You own the stock and buy the right to sell it at a chosen strike. Below that strike your losses stop; above it you keep the shares' full upside.

Also called a married put when bought at the same time as the shares. Mechanically it is identical to a long call at the same strike — put-call parity again.

The premium is a genuine cost, paid whether or not the protection is needed. That is what makes it insurance rather than a trade.

Priced off the guide's shared chain, on a $50 stock. Every figure beneath the diagram is computed from these legs by the same engine the Strategy Builder uses.

Flat at maximum loss below the put strike: the shares' fall is offset one-for-one by the put's gain.

Rising without a cap above the break-even, which sits at the share basis plus the premium paid.

The same shape as a long call, which is exactly what the combination synthesizes.

It suits a holding you want to keep through a period you are wary of, where selling would trigger tax or forfeit a position you believe in longer-term.

Strike choice is the deductible. A put close to the money costs more and protects sooner; a further one is cheaper and lets more of the fall through first.

The cost is continuous rather than one-off, which is the figure most often underestimated. Protection rolled every quarter has an annual running cost worth calculating explicitly.

Like everything in this guide, these are descriptions of structures and conditions — context for your own decisions, not instructions to trade.