Covered Bear

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Dictionary Says

Definition of 'Covered Bear'

A trading strategy in which a short sale is made on a long position. A covered bear is a covered strategy where the investor shorts a stock that they already own. When an investor uses this strategy he feels that the stock is a bear stock and will decline in value. The risk involved in this strategy is limited because the investor already owns the underlying stock and can use those shares to cover.
Investopedia Says

Investopedia explains 'Covered Bear'

Investors can also write and purchase options as a type of covered bear strategy. Covered option trades afford investors more protection than a naked trade where the investor does not own the underlying security that he is hedging against. If the price of the underlying security doesn't fall, then the investor can let the option expire.
Search results for

'Covered Bear'

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    Bear Put Spreads: A Roaring Alternative To Short Selling. ... In this case, an
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  • Profiting From Stock Declines: Bear Put Spread Vs. Long Put

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    Profiting From Stock Declines: Bear Put Spread Vs. Long Put. ... This can be
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    ... call options can be also used as the basis for a covered call strategy ... All Weather
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  • 10 Options Strategies To Know Slideshow | Investopedia

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    ... for everyone and is usually purchased by younger individuals only when they have
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  • Use Married Puts To Protect Your Portfolio

    http://www.investopedia.com/articles/optioninvestor/080101.asp
    ... outstanding, you cannot sell your shares; furthermore, unlike a covered call, a ... Weather
    investment strategies can shield investors during the worst bear markets ...

  • What Year Three Of The Bull Market Holds In Store

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  • The Importance Of Property Insurance

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    ... for a guarantee from the insurance company that it will bear the burden ... Commissioners,
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