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.

A covered put is an options strategy with undefined risk and limited profit potential that combines selling stock with a short put option. Covered puts are used to generate income if an investor is moderately bearish while short a stock.

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.

A long put is a bearish options strategy. Buying a put option is a levered, risk-defined, cost-effective alternative to selling shares of stock.

A short call is a bearish options strategy with undefined risk. Selling a call option is an alternative to selling shares of stock, and the seller receives payment when the option is sold.