yes when I "short" I exclusively use options namely puts. direct shorting exposes oneself to theoretical 'infinite' losses. buying a put is more like buying insurance i pay a premium which is a small amount that I lose if nothing happens, but if the underlying tanks hard, my "insurance" pays off.
yes when I "short" I exclusively use options namely puts. direct shorting exposes oneself to theoretical 'infinite' losses. buying a put is more like buying insurance i pay a premium which is a small amount that I lose if nothing happens, but if the underlying tanks hard, my "insurance" pays off.