The most basic bearish options strategy — buying a put option gives you the right to sell the underlying at the strike price. You profit when the stock falls below your breakeven (strike - premium). Alternative to short selling with defined risk.
Strike Price - Premium paid (substantial)
Limited to: Premium paid
Strike Price - Premium paid
Long 1 Put
Substantial profit potential (to strike minus premium if stock goes to zero). Risk limited to premium.
When you expect the stock to decline. When you want bearish exposure with limited risk. When you want to avoid the unlimited risk of short selling stock.