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Long and short options

This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.

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March 15, 2011 at 7:31 pm #47772
salu007
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Dear Sir,
Can you please tell what exactly is Long and short call and put options.I am not able to understand concept of Long and short
March 17, 2011 at 8:48 pm #79948
John Moffat
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You buy long – that means you buy and and intend to sell later (you hope the price will go up and therefore you make a profit).
You sell short – that means that you sell now and buy later (you hope that the price will go down and therefor you make a profit.
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