7 Best Bearish Futures and Options Trading Strategies
Conquer downturns with these 7 best bearish futures & options trading strategies.
For most beginners in trading, terms such as option trading strategies and option strategies are alien to them. However, to crack the code of the investing game, these are essential concepts to understand. According to a market survey conducted by expert traders, the winning probability using options trading strategies goes as high as 98%, yielding up to 40% returns. 

Therefore, when employed carefully, option trading strategies are the best-known methods of amassing wealth over a long period of investment. Future and Options Trading are the key to a new realm of opportunities that can provide young traders an early advantage. Options are best suited to a bullish market. However, when a bear market prevails, bearish option strategies must be employed.

Therein lies the beauty of options trading, which can easily adapt to different market conditions. Moreover, options are always non-linear, which grants you the freedom to create unique trading strategies by blending them with other futures and options. Now that we understand the value of options trading, let's look at the different types of options available to you.

Options Trading Strategies Variants

Call options and put options are the two important types of options that you need to become familiar with. The first variant, or the call option, is more like a contract that gives the holder the right without the obligation to purchase an underlying asset within a fixed period of time. A put option, on the other hand, is exactly the opposite, providing the contract holder the right to sell the asset within the expiration period. 

This distinction serves different aims and allows investors to employ them according to market conditions. In this regard, investors use call options to succeed in a bullish market, while the put option is more suited to a bearish market. Therefore, market trends have a huge role to play in the specific type of options trading strategies used. Accordingly, these are divided into three primary types, which are Bullish, Bearish, and Neutral Options Strategies. Traders use an option trading app to execute these strategies effectively. In our guide, we will cover the 7 trading measures you may employ when the market is bearish.

7 Bearish Futures and Options Trading Strategies

Traders often turn to bearish future and option trading strategies when they deduce that the value of the underlying asset will dip. If used properly and at the right time, these seven strategies may be most effective.

1. Bear Call Spread