When markets turn volatile, most traders find out how they feel about losses in the middle of a sell-off—the worst possible time to make decisions.
Today I’m giving you a plan for this bear market.
I cover three goals for navigating a bear market with options, with 10 strategies across all three:
- Protecting what you own
- Earning income while prices fall
- Profiting from the decline itself
What You Will Learn
- How options behave differently in a bear market
- Protective puts and put spreads
- The collar strategy
- Deep in-the-money covered calls
- Bear call spreads
- Running the wheel in a bear market
- Put ratio backspreads
- Bearish butterflies
- VIX call ladders
- The five biggest bear market mistakes
Watch Next
Timestamps
- 00:00 Start
- 00:33 How Options Behave in a Bear Market
- 01:18 Three Goals in a Bear Market
- 11:54 What Not To Do
- 12:53 Cash is a Position
- 13:25 Framework
Helpful Resources
- CSP Calculator
- Option Wheel Tracker Spreadsheet
- Wheel eBook
- How to Fix Losing Options Trades
- 10-Part Iron Condor Course
- Options Trading 101
- OTIQ Best Articles
- Master Credit Spreads
Related Videos
- Why I’m Selling 2-Year Puts (And Why Most Traders Won’t)
- SOXL is a Trap for Investors – But a Goldmine for Option Sellers
- Why Boring Trades Are the Best Trades
- The Options Strategy That Profits Whether the Market Goes Up OR Down
- 5 Options Trading Mistakes That Are Destroying Your Account
- Bull Put Spreads — How to Pick Your Strike
- How to Fix Losing Options Trades (Cash Secured Puts)
- What to Do When Your Cash Secured Put Goes Against You
- Why Stop Losses DON’T Work for Options
- The Exact Strike and DTE Framework for Selling Options
