Covered Put

bearish1 leg

Also known as: Sell-Write

Short 100 shares + sell put. Mirror of covered call for bearish setups.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

Short 100 shares, sell one put against the short. Premium income against a short stock position.

When to use it

A bearish income structure for experienced traders comfortable carrying short stock.

What can go wrong

Short stock has unlimited upside risk — the sold put does not protect against a rally; it only adds income and caps the downside profit.

New to options? Start with the free curriculum — or see which strategy fits your outlook.

Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.