The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about how to bet against the market and going over three ways in which you can do that. Again, there’s essentially three things that you can do to bet against the market or basically take advantage of or profit from the market moving lower. The first and most obvious way is you can actually short stock. Now, this is the default mechanism for many investors because they only know one side of the trading world which is the stock side. They choose to short stock which means that they basically borrow stock from their brokerage or borrow from the market, sell the stock in the open market and then hope to repurchase the shares later at a lower price to complete the trading loop. And so, this takes advantage of the stock going down, but it’s obviously very capital intensive, leaves you exposed to the stock continuing to move higher. Another thing that you can do which is similar to number one