With high inflation and continuous, steep rate increases, the markets will continue to tumble. This begs the question… “is it time to short the market?”
Shorting can be lucrative in down markets, but it can be risky. If the stock rises above the shorting price, then losses would be unlimited. These losses would be even greater if margin was used.
Instead of shorting the market, here is one main alternative to short selling that is profitable in down markets.
Buying puts
Losses would be limited to the premium paid for the option. Buying puts can be especially profitable in down markets, but have much less risk than shorting or using margin.
However, premiums change frequently and can be expensive. So, top traders have been using the Cobra Trader Pro to use advanced charts and have custom alerts of numerous stocks. These tools make it even easier to buy the right options at ideal prices.
Short stocks and buy puts the right way with Cobra Trading!
Cobra Trading systems including DAS, facilitate trading put options and short selling with its market scanner.
For a limited time, readers can earn a 25% discount on equity trades. They can also get one free month of software (DAS, Cobra Trader, and Sterling).
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