Hey Traders,
Markets are still red hot right now.
Nvidia (NVDA), Broadcom (AVGO), Robinhood (HOOD) — all hitting new highs.
Now, most people see that and get excited. They start thinking about chasing, piling in, maybe grabbing some calls.
But me? I’ve been around long enough to know what comes next.
I’m not bearish — but when you see a bunch of names spiking at the same time, you’ve gotta start thinking about protection.
Why I Don’t Sell (Even When I Want To)
Let me be clear: I’m not selling these positions. I’ve held NVDA since it was around $51, and it’s up in the $150s now. Selling that would trigger a massive tax bill — and I’d lose my long-term position.
But I still want to protect the gains I’ve got.
So what do I do?
The Married Put Strategy
I use something called a married put — and it’s one of the simplest, smartest ways to protect a stock without having to sell it.
Here’s how it works:
- Let’s say NVDA is trading at $155.
- I buy a $155 put that expires 30–40 days out.
- That put gives me the right to sell NVDA at $155 — no matter what happens.
- If NVDA drops, the put goes up in value. If NVDA keeps climbing, the put expires worthless.
That’s it.
It’s basically insurance. I’m paying a little up front to cover my downside — just like you’d insure a car or a house.
And just like car insurance, I hope I never need it. But if I do? I’m covered.
Why It Works
Too many people only think about downside after the market drops.
I’d rather have a plan before that happens — especially when the market’s this hot and I’ve got big winners on the board.
So if you’ve got stocks hitting new highs and you’re wondering how to protect them without selling…
The married put is your answer.
Trade well,
Jack Carter
P.S. Targeting extra cash on a stock — whether it goes up down or sideways? That’s my specialty. Click here to see how I do it on one of the most volatile stocks in the market.
