Options short put and long call


When you have a long position on any security, you want that security lohg to go up. For them to make a profit, the anx option must increase in price, so they can sell it for a higher price than for which they have bought it. They are long the put option. Long put positionWhen you buy and own a put option, you have a long put position. But being a different thing, your directional bias concerning the underlying is bearish, as the option you own increases in price when the underlying stock falls.

Long call positionWhen you buy and own a call option, you have a long call position. That is, for every 100 shares shorted, 2 calls must be bought.Long Call Synthetic Straddle ConstructionBuy 2 ATM CallsShort 100 SharesLong call syntheticstraddles are unlimited profit, limited risk options trading strategies that areused whenthe options trader feels that the underlying assetprice will experience significantvolatility in the near term. Whether we earn that profit or suffer a loss depends on the performance of the underlying asset.




Options short put and long call

Options short put and long call