Bearish Outlook

Bear Call Spread (Credit Call Spread)

A bear call spread is a limited-risk, limited-reward strategy, consisting of one short call option.

Bear Put Spread

A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.

Bear Spread Spread (Double Bear Spread, Combination Bear Spread)

This strategy is the combination of a bear call spread and a bear put spread.

Covered Put

This strategy is used to arbitrage a put that is overvalued because of its early-exercise feature.

Long Put

This strategy consists of buying puts as a means to profit if the stock price moves lower.

Long Ratio Put Spread

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the downside potential is substantial.

Naked Call (Uncovered Call, Short Call)

This strategy consists of writing an uncovered call option.

Short Ratio Call Spread

This strategy can profit from a steady stock price, or from a falling implied volatility.

Short Stock

A candidate for bearish investors who wish to profit from a depreciation in the stock's price.

Synthetic Long Put

This strategy combines a long call and a short stock position.

Synthetic Short Stock

This strategy is essentially a short futures position on the underlying stock.