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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Long Put

A long put is a bearish options strategy where the expectation is a decline in price prior to expiration. Buying a put option is a levered, risk-defined alternative to selling shares of stock.
Long Put
Kirk Du Plessis
Apr 19, 2021

A long put option strategy is a single-leg strategy where you are ultra bearish on the future direction of the stock and as a result buy a put option looking for the stock to make a dramatic move lower. Long put options are very vulnerable to moves in implied volatility and time decay. These are the first options that most investors are taught (despite their low success rate). Unless we use them for hedging purposes, we do not trade single leg put options as part of our portfolio. However, they are a great way to hedge your stock portfolio if you feel the market could go lower in the future and you want some "insurance" protection.

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Short Call
A short call is a single-leg, bearish options strategy with undefined risk and limited profit potential. A short call is sold when the seller believes the price of the underlying asset will be below the strike price on or before the expiration date.

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