Also known as: Bearish Risk Reversal
Sell OTM call + buy OTM put. Bearish for little or no upfront cost.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell an out-of-the-money call to finance buying an out-of-the-money put. Bearish exposure with a do-nothing zone between the strikes.
Hedging a long position or expressing a bearish view when call premium is rich enough to pay for the protection you want.
UNLIMITED above the short call strike. Against long shares this is a collar and the risk is covered; naked, it is a short stock profile.
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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.