Skill Level: Beginner

Targeted Audience: This section is meant for traders that are looking for various strategies to implement when they have a bearish assumption for an underlying asset.

End Goal: Even though all these bearish option strategies share the same success factor (the stock price goes down), other factors such as IV, option greeks, and portfolio management will determine which of these strategies will return the best results.

Next Step: Now that you have an idea of which strategies to use when you want the underlying asset to fall, go ahead and learn about the strategies that benefit when the underlying stock trades sideways.

We recommend trying to learn about iron condors and short strangles.