Strategy - BUY PUT (details below)

• bullish
• bearish
  • very bearish
  • certain that the market will not rise
  • moderately bearish + fairly certain that the market will not rise
  • flat or mod. bullish in near-term (weeks) + bearish in longer term (months)
  • hold stock and bearish
• neutral
• volatile

Strategy Implementation
Put option is bought with a strike price of a. The more bearish the investor is, the lower the strike price should be.

Upside Potential
Profit potential is unlimited (well, not really unlimited of course as the market can not fall below zero).

Breakeven Point at Expiry
Strike price minus premium paid.

Downside Risk
Limited to the premium paid - incurred if at expiry the market is at or above the strike a.

Margin
Not required

Comment
If the market does little then the value of the position will decrease as the option time value falls.