Category: Bearish Option Strategies

If you have a strong feeling that a stock will drop soon, you can short sell your stock. However, this is a risky strategy since you can suffer from unlimited loss if the price...

The naked call is considered as one of the riskiest strategies since because the potential for loss is unlimited. Here the seller of the naked call is highly exposed to risk because he does...

The put back spread is a good strategy when you are anticipating a significant drop in a volatile stock. To create a put back spread, you will need to sell a put at higher...

The bear call spread is used by investors who have bearish outlook on particular stock. This is a low risk, low reward strategy. To create a bear call spread, you can use a call...

The bear put spread is used by investors who are bearish about a particular stock. This strategy is a low risk, low reward strategy. To create a bear put spread you will use put...