Bearish strategy · Scenario Lab
Market outlook Moderately bearish
Short shares with short put limiting profit below strike. Use the lab to see how the position responds before committing to a single forecast.
Scenario Lab
Move the underlying, clock, and implied volatility independently. Values before expiration use a Black–Scholes estimate; expiration values use intrinsic payoff.
The catalog’s default strikes and premiums are illustrative. No ticker lookup or market data is used.
| Underlying | Today | 30 days | 14 days | 7 days | Expiration |
|---|---|---|---|---|---|
| -15% — | — | — | — | — | — |
| -10% — | — | — | — | — | — |
| -5% — | — | — | — | — | — |
| 0% — | — | — | — | — | — |
| +5% — | — | — | — | — | — |
| +10% — | — | — | — | — | — |
| +20% — | — | — | — | — | — |
At expiration
Time value has gone to zero. IV no longer changes the result.
| Underlying | Move | P/L |
|---|---|---|
| — | -15% | — |
| — | -10% | — |
| — | -5% | — |
| — | 0% | — |
| — | +5% | — |
| — | +10% | — |
| — | +20% | — |
Model boundary: theoretical estimates use dividend-adjusted Black–Scholes for European exercise or a 100-step binomial estimate for American exercise. Fees, spreads, discrete dividend dates, early assignment behavior, and liquidity effects are excluded. Calculation, not advice.
Why this structure behaves this way
Negative delta from short stock, partly offset by the short put's positive delta. Collects theta from the put; carrying cost and borrow risk on the short shares add rate sensitivity beyond the options legs.
This page uses the catalog’s illustrative default legs so you can compare direction, time, and volatility effects in one place. Edit the assumptions above to test a different starting point.