In the former, the sell (writing) is opening the put position. If a trader initiates a short put, they likely believe the price of the underlying will stay above the strike price of the written put.

A short call or put strategy involves simply selling ... the call option to buffer any losses on your stock position. The payoff diagram of a covered call write strategy where you buy 100 shares ...

especially when the account does not have sufficient account equity to take on the resulting position. Please visit the Help Center to learn more about Expiration Risk. Profit & Loss Diagram of a ...

An investor with a short position has sold shares but doesn't possess them yet. Buying or holding a call or put option is a long position. The investor owns the right to buy from or sell to the ...

A short call position means you sold a call contract and must acquire and sell an asset at a set price if the buyer of the contract exercises their option. A short put position means you sold a ...

You get the premium right away for selling a short put option. Acquire a Position in a Security: You get a chance to buy the security at a price closer to what you want. A trader also just may be ...

Put options, which give holders the right to sell stock at a prearranged price, are complicated enough. Taking a short position in puts, which means the investor agrees to have stock dumped on him ...

In case of a plunging share price, our long delta will increase along the way and our short put position will start to mimic a pure stock position. I don't want to face the same risk as a common ...

Famed short-seller Jim Chanos remains short Tesla, but is now utilizing options for the exposure rather than directly short-selling shares. "We transformed our stock position into a put position ...