Bearish strategies

An investment Plan in one's life is just a game-changing plan. Therefore, for a successful financial future you'll need to examine and reconsider your portfolio on a regular basis. But many times it is observed that in the options game, traders just want to maximise their profits at low risks. So they only jump here without knowing of the available Options Strategies. But with little hard work and research, traders can do wonders and utilise options with their maximum. put option

Options Strategy involves the simultaneous buying and selling of one or more options with distinct variables. It intends to focus on a particular risk or opportunity along with the elimination of other possible risks or dangers. It is classified as: Bullish Strategy, Bearish Strategy and Neutral Strategy.

Bullish Strategy: - Generally the options trader goes for this strategy when he expects the underlying stock price to go to a higher place. It becomes necessary for him with an estimate of the stock price and its time frame in that the possible rise can happen. Once the trader is bullish and is buying a moderate rise in the price of underlying asset, he then opts for Bull Call Spread Strategy. It involves buying the decision options at a particular rate and then selling them an increased rate in the exact same expiration period and underlying asset.

Bearish Strategy: - This strategy is recognized as when the options trader expects the underlying stock price to fall. An estimate is required of how low the stock price could be, along using its time frame of decline. Once the trader is bearish and is expecting a swim in the price of underlying asset, he then opts for Bear Put Spread Strategy. In cases like this, the options trader buys the put options at a particular rate and then sells them at a lesser rate in the exact same expiration period and underlying assets. These strategies provide limited gains and limited losses. straddle option

Neutral strategy: - This strategy is also called non-directional strategy. Here the options trader has no idea about the price of the underlying stock. It may either rise or fall. Moreover, the profit in this instance doesn't rely on the rising price i.e. if the purchase price will rise, the profit will even rise, and instead it depends on the expected volatility of the underlying stock price. Examples of this strategy are Strangle, Straddle, Butterfly, Collar, Risk Reversal, Iron Butterfly, Iron Condor etc.

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