Is there another way to short a security besides trading a put?

Answer 1

There a a few ways to invest/bet that a stock is going lower: Buy a put, Sell a call, or Short the stock outright.
All have advantages and disadvantages. All involve a commission cost. Buying a put is least risky because your loss is limited to the price of the put. If you sell a call and the trade goes against you, you're on the hook for the amount the call rises. Likewise, with the short sale of a stock. If it goes up, you'll need to cover at a loss. If you want to do this, I'd advise a purchase of a Put. Keep in mind that most Put/Call options expire worthless. That's one reason to look into Selling a Call. You get to keep the proceeds of the sale, if in fact the Call expires worthless.

Answer 2

Presume we're talking about a major stock here. Use MSFT as an example.

Short the futures. (leveraged, open-ended both directions)

Sell short the stock. (unleveraged, open-ended both sides)

Sell short a call. (unlimited risk, limited gain)

Sell a long straddle.

Short a long straddle.

With derivatives, the possibilities are numerous, pairing futures, options and the underlying gives too many combinations to list.

Oh yes, you can also short the industry ETF.

Answer 3

If you have to ask this question, then you are better off not being in the trading business until you learn otherwise. Over 90% lose money. For your question; however, please see the link below.

Answer 4

Ditto...go take a class in Derivatives. And then financial.