Beginner Strategies
Here we explain beginner option strategies.
When an investor buys or holds a call option, they are taking a long position in that option. A long call is a bullish options trading strategy that allows an investor to potentially profit from a rise in the price of an asset without actually owning the asset itself.
A short call is a bearish to neutral options trading strategy that allows an investor to potentially profit from a decline in the price of an underlying asset. When an investor sells or writes a call option, they are taking a short position in that option. Writing a call option is a short position.
A long put is a bearish options strategy that profits from a decline in the underlying asset price. With options, buying a put option is a long position.
A short put is a bullish to neutral options strategy that profits from a rise in the underlying asset price. With options, selling a put option is a short position.
Last modified 4d ago