Archive for the ‘BEARISH STRATEGIES’ Category
Short Call
When you are bearish on market direction and also bearish on market volatility.
A short call is also known as a Naked Call. Naked calls are considered very risky positions because your risk is unlimited.
Long Put
When you are bearish on market direction and bullish on market volatility.
Like the long call a long put is a nice simple way to take a position on market direction without risking everything. Except with a put option you want the market to decrease in value.
Buying put options is a fantastic way to profit from a down turning market without shorting stock. Even though both methods will make money if the market sells off, buying put options can do this with limited risk.