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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Synthetic Short Stock

To create a short synthetic stock position, you simply buy an ATM put option and sell an ATM call option at the same strike price. This creates a bearish position with much less capital than shorting a stock.
Synthetic Short Stock
Kirk Du Plessis
Apr 19, 2021

While most traders don't typically short stock, there are situations where using short stock can be beneficial in neutralizing your portfolio if it gets too long. However, shorting stock outright is capital intensive with margin. Today we'll show you how you can use options as a way to go synthetically short a stock with a fraction of the capital requirement.

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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.

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