Chapter 02 · Section 2.1

Price Fall - Put

FUTURES & FORWARDS CALL OPTIONS PUT OPTIONS

If you expect a fall in price SHORT SHORT ...... (Bearish)

If you expect a rise in price LONG ...... ...... (Bullish)

With a put, if you expect the price of the underlying asset to fall, you:

a) take a short position.
No. If you are short and the price falls, the market is going against your position and you are exposed to practically unlimited loss, (or more preciselly, a loss limited to the exercise price.
b) take a long position.