Short Selling vs. Put Options: A Strategic Approach to Market Downturns
In the ever-evolving landscape of financial markets, investors are constantly seeking effective strategies to capitalize on declining stock prices. Among the myriad of options available, two prominent methods stand out: short selling and purchasing put options. While both strategies aim to profit from bearish market conditions, they differ significantly in execution, risk exposure, and potential rewards. This article delves into the nuances of short selling versus put options, elucidating why many traders prefer short selling as their go-to strategy.