COVERED PUT | bear strategy

Covered Put

Example: Sell put; sell futures
Market Outlook: Bearish
Risk: Unlimited
Reward: Limited
Increase in Volatility: Hurts position
Time Erosion: Helps position
Break-Even Point (BEP): Sale Price of Underlying + Premium Received

Writing covered puts is a bearish options trading strategy involving the writing of put options while shorting the futures.

For a full list of strategies