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+Gaining Exposure 	 	•	 203
+overvalued and it drops before the shorter option expires, you must pay the 
+entire bid-ask spread and the broker and exchange fees again when you roll 
+your put option.
+The moral of the story is that when selecting tenors for puts, you need 
+to balance the existence of upward market drift (which lends weight to the 
+argument for choosing shorter tenors) with bid-ask spreads and other fees 
+(which lends weight to the argument for longer tenors). If you can iden-
+tify a catalyst, you can plan the tenor of the option investment based on 
+the expected catalyst. However, it’s unfortunate but mysteriously true that 
+bearish catalysts have a tendency to be ignored by the market’s “happy ma-
+chine” until the instant when suddenly they are not and the shares collapse. 
+The key for a short seller is to be in the game when the market realizes the 
+stock’s overvaluation.
+Strike Price Selection
+When it comes to strike prices, short sellers find themselves fighting drift  
+in much the same way as they did when selecting tenors. A short seller with 
+a position in stocks can be successful if the shares he or she is short go up 
+less than other stocks in the market. The short exposure acts as a hedge to 
+the portfolio as a whole, and if it loses less money than the rest of the port-
+folio gains, it can be thought of as a successful investment.
+However, the definition for success is different for buyers of a put 
+option, who must not only see their bearish bets not go up by much but 
+rather must see their bearish bets fall if they are to enjoy a profit. If the 
+investor wanting bearish exposure decides to gain it by buying OTM puts, 
+he or she must—as we learned in the section about leverage—accept a 
+realized loss as soon as the put is purchased. If, on the other hand, the 
+investor wants to minimize the realized loss accepted up front, he or she 
+must accept that he or she is in a levered bearish position so that every 
+1 percent move to the upside for the stock generates a loss larger than 1 
+percent for the position.
+There is another bearish strategy that you can use by accepting 
+exposure that I will discuss in the next section, but for investors who are 
+gaining bearish exposure, there is no way to work around the dilemma of 
+the option-based short seller just mentioned.