Put Option Strategy
Typically, a binary PUT option is used as a strategy in bearish markets, when there is negative
consumer sentiment. However, since global markets experience volatility, especially in today's current
market environment, bullish markets can still experience a fall in price, and therefore a digital PUT
option can be applied in this instance too.
Remember that the terms “bull market” and “bear market” are asset-specific. That is, one
asset could be experiencing rising prices (bull market) while at the same time prices are
falling for another binary option market (bear market). So a PUT option strategy has to be
considered for each individual binary option asset, and it is not necessarily recommended to
follow a put option strategy for every single market.
Binary Options Traders may use a PUT option strategy when prices are falling, but some
skilled traders may choose to follow a PUT option strategy when prices are actually rising, by
predicting short term losses even as the overall trend rises.
PUT options strategies are an important tool for binary options traders, and should be
applied after careful consideration.