Bearish Coin Flip
Super simple options spread – make money if the stock goes down, lose money if it goes up.
Risk about the same amount as the potential reward, and count on your edge to shoot over 50% winners.
Buy a put option with a strike price above the current price of the stock, and sell a put option below the current price of the stock.
Try to choose strike prices that put the current price of the stock right in the middle of the two strikes.
This should result in a risk/reward that is close to 50/50.
Example: XYZ at $60. Buy the 65 put, sell the 55 put for a net price of $5.00