Two powerful tools in the bearish (pessimistic) investor's arsenal are short selling and put options ... Buying puts on highly volatile stocks may mean paying exorbitant premiums.

Days to cover, also known as a stock's short interest ratio, is a metric that expresses how many days it would take for all of a stock's open short positions to be covered assuming the stock's ...

Keep in mind that the example in the previous section is what happens if the stock does what you think it will -- declines. The biggest risk involved with short selling is that if the stock ...