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I have found an interesting article why down rampers i.e...

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    I have found an interesting article why down rampers i.e intentionally trying to push a share price down benefits them at the expense of unsophisticated investors. i.e the process of shorting a stock.


    https://financhill.com/blog/investing/how-to-short-a-stock-with-options

    There is more than one way to profit when you expect a certain stock to decrease in price. Rather than borrowing shares, selling them, and buying them back as you would with the standard short-selling process, you can short a stock with options. Specifically, you can use call and put options to create what is known as a “synthetic short position”.



    The strategy works like this: you can purchase a put option, which is the right – but not the obligation – to sell specific shares at the price listed in the option (strike price) by the date identified in the option.

    At the same time, you can sell a call option, which gives the purchaser the right – but not the obligation – to buy specific shares at the price listed in the option (strike price) by the date identified in the option. Both of the options carry the same strike price and the same date.



    If the share price of the specified stock goes down, the value of your put option increases.

    Conversely, if the share price of the specified stock goes up, the value of your put option falls and the value of the call option increases. That leaves you with an obligation to cover the difference in share price, which presents the same sort of risk that you face with a standard short sale.
 
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