Bearish Strategies

Long Put

A bearish options strategy in which the customer buys put contracts with the intention of profiting if the underlying stock price falls below the strike price before expiration of the option.

Bear Call Spread

The simultaneous writing of one call option with a lower strike price and the purchase of another call option with a higher strike price.

Bear Put Spread

The simultaneous purchase of one put option with a higher strike price and the writing of another put option with a lower strike price.

Covered Put

A put option position in which the option writer also is short the corresponding stock or has deposited, in a cash account, cash or cash equivalents equal to the exercise of the option.

Synthetic Long Put

A short stock position combined with a long call of the same series as that put.