An investor or trader is said to be bearish when they expect the price of an asset or commodity to fall. The opposite of bearish is Bullish.
In the context of Options, bearish usually means an investor is Long (has bought) puts or Short (has sold) calls.
The term bearish can have a relationship with the expression 'Short', but it is important to note that it is possible to hold Short positions which are the opposite (i.e. Bullish). For example, selling put Options which profit when the Underlying asset or commodity rises.
Contributed by: Ralph Windsor
In the context of Options, bearish usually means an investor is Long (has bought) puts or Short (has sold) calls.
The term bearish can have a relationship with the expression 'Short', but it is important to note that it is possible to hold Short positions which are the opposite (i.e. Bullish). For example, selling put Options which profit when the Underlying asset or commodity rises.
Comments
There are currently no comments for this term.
Post a Comment
You must be registered and logged in to post a comment.