Chapter 06 · Section 6.1

Puts in a Bearish Strategy

  1. 1Purchasing a Put
  2. 2Investing
  3. 3Profit Potential
  4. 4Loss Potential
  5. 5Breakeven Point
  6. 6Increase in volatility

A trader who expects market prices to fall is said to be bearish. Similarly, a bear market describes a significant market decline.