mistake, Selling a put is going short, not buying a put.a put is created when you borrow the stock from the broker then sell it on the market then you hope the market goes down so you can selol it back to the broker and get the difference
I debated simply deleting this comment for fear it would so horribly mislead people, but I'll instead use it as an educational example. But everyone please ignore what this poster said.
You needn't borrow anything to write a put. You simply post margin. If you write a put you are indeed short THE PUT. But you have taken a LONG position on the underlying instrument. Buying a put is ALWAYS taking a short position on the underlying. Period.
selling a short? :/ just remember LONG position when you profit on the UPside, SHORT position when u profit on the DOWNside.
It gets confusing when you WRITE the option cause u profit from the premium, so if its a put you profit if it stays up, n call u profit when it stays down - making the put the LONG n the call the SHORT
Im an accounting major too so i could be wrong too LOL
mistake, Selling a put is going short, not buying a put.a put is created when you borrow the stock from the broker then sell it on the market then you hope the market goes down so you can selol it back to the broker and get the difference
Serge808 3 years ago
I debated simply deleting this comment for fear it would so horribly mislead people, but I'll instead use it as an educational example. But everyone please ignore what this poster said.
You needn't borrow anything to write a put. You simply post margin. If you write a put you are indeed short THE PUT. But you have taken a LONG position on the underlying instrument. Buying a put is ALWAYS taking a short position on the underlying. Period.
I have been trading options almost 30 years.
mikegasior 3 years ago
woops i meant selling a short. i hope to get into the trading business, im still learning about it. i majored in accounting
Serge808 3 years ago
selling a short? :/ just remember LONG position when you profit on the UPside, SHORT position when u profit on the DOWNside.
It gets confusing when you WRITE the option cause u profit from the premium, so if its a put you profit if it stays up, n call u profit when it stays down - making the put the LONG n the call the SHORT
Im an accounting major too so i could be wrong too LOL
mugenJP 2 years ago
hey champ..
Tell us a bite of what you are doing for a living :) It seems like you have a cool life..
badboy4life414 3 years ago
i thought a short position was when traders sell shares they do not own??
sufirevert 3 years ago
hey mike !
what about tracker? i mean can anyone buy one , how much it cost , where and under which conditions?
thx
bourrico2410 4 years ago
Great explanation Mike. Thanks!
mattinconn 4 years ago