Permissible way to bet against a company?

Investment Questions and Chats Stocks
#1

Assalāmuʿalaykum

Based on my understanding, it seems that short-selling is widely considered impermissible. Options seem to be considered permissible by some. Put options appear to be an even more gray area.

When NKLA shot up earlier this year, I really wanted to bet against the company. I was convinced it was a fraud. Since then, the stock price has cratered by about 75% as more and more reports came out attacking the company’s claims as lies.

Is there any permissible method to bet against a company like NKLA?

Thanks,
Mujtaba

#2

Wa alaykum salaam,

Options too are considered by most as non-compliant.

You would need to invest through a Shariah compliant contract in whichever strategy you adopt. I am not aware of anything offered to retail customers which would enable you to do this.

#3

Understood. Thank you