Short Option

A short Option is a position wherein a trader sells an Option.

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When a trader sells an Option, it is called writing or shorting an option. Like the long option, a Short Option position can be taken in both bullish and bearish markets and in Call and Put options. When the trader believes that the price will move down, he takes a Short Call Option position whereas when he is bullish on the underlying, he takes a short Put Option.

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