Quick overview short/long and put/call options
Option | Description |
Long/Call | Buyer thinks underlyings price will rise. He has the right (but not the duty) to buy the underlying at the specifed (in the option contract) date and price. |
Long/Put | Buyer thinks underlyings price will fall. He has the right (but not the duty) to sell underlying at the specifed (in the option contract) date and price. |
Short/Call | Seller (Writer) of the option thinks underlyings price will fall. He has the duty (if the option is exercised by the buyer) to sell the underlying at the specifed (in the option contract) date and price. |
Short/Put | Seller (Writer) of the option thinks underlyings price will rise. He has the duty (if the option is exercised by the buyer) to buy the underlying at the specifed (in the option contract) date and price. |
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