Bearish Options Strategies
Learning how to make money in down markets is a critical component to your long-term success rate. The ability to profit when stocks are falling gives options traders a superior edge in the financial markets.
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Bearish Debit Spread or Credit Spread?

If you are bearish and want to trade an option spread strategy, implied volatility is the main factor when deciding between bearish put debit spreads and bearish call credit spreads.
Bearish Debit Spread or Credit Spread?
Kirk Du Plessis
Apr 19, 2021

Choosing between using a debit spread or credit spread for a bearish stock setup requires that we first take a look at where implied volatility is trading. If IV is high then we want to be a net seller of options and would opt for selling a call credit spread above the market. If IV is low then we want to be a net buyer of options and would alternatively opt for buying an ATM put debit spread.

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No Guaranteed Trades
There are no guaranteed trades. As an active options trader, you will have winning trades and losing trades. Sticking to the trade plan, remaining consistent, and mechanically entering trades is an important part of portfolio management.

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