3 ms·
Not in general, depends on interest rates & others' bets for or against. Shorting means selling without owning (borrowing) the underlying stock, and paying a b
by OJFord 3y ago
Not in general, depends on interest rates & others' bets for or against.
Shorting means selling without owning (borrowing) the underlying stock, and paying a borrow fee for as long as you hold the position.
Buying (being 'long') a put means paying money up front (the premium) for the option to sell a stock (doesn't matter if you own it or not at the moment) before a certain expiry date.
Typically you would be more likely to hold a short position longer than you'd roll over options, as far as I understand. But it's not clear cut and generalisable because the fee structure is different.
Also buying puts you have no risk if the stock rises - you're out the premium but you were anyway. If you sold short, it's getting more and more expensive to cover if you want to give up on the bet (and borrow fee probaby rising too, so also increasingly expensive to hold).