List of Bearish Option Strategies:
The below bearish option categories are most commonly used strategies that are appropriate for a bearish outlook.
This is a single position strategy that involves only one transaction. It is suitable for beginners and comes with a straight cost.
Only one transaction is required for this single position strategy, and it fabricates a straight credit. It is not suitable for beginners.
This simple strategy is perfectly suitable for beginners. It involves two transactions, which are combined to create a debit spread.
This is relatively straightforward strategy, but it necessitates a high trading level so it isn't really suitable for beginners. A credit spread is created using two transactions.
This is complex and not suitable for beginners. It requires two transactions and can create either a debit spread or credit spread, depending on the ratio of options bought to options written.
This is fairly complicated and not ideal for beginners. A credit spread is created and two transactions are involved.
The bear butterfly spread has two variations:
i) Call bear butterfly spread
ii) Put bear butterfly spread.
It's not suitable for beginners; it entails three transactions and creates a debit spread.
This requires three transactions to create a debit spread. It is not suitable for beginners due to its complexities.