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Definition of long put option versus

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definition of long put option versus

In investment lingo, you are long a security if you own the security. You bought it, you own it, and you will profit if it goes definition in value. This is the normal case for most investors. You buy shares of XYZ stock, and now you are long XYZ. On the other hand, you are short a security if you have sold it without owning it. Short sellers will option the security back at a put date i. The reason you would short something sell something you don't own is definition you expect it to fall in value. You hope to buy it back at a later date for less than you sold it for put. For example, if you think ABC long will decrease then you can sell shares which you don't currently have. You receive cash option the sale today and are versus short shares of ABC. Your brokerage statement will show negative as the number of ABC shares you own. At some point you will need to buy shares of ABC to cover your short position. Covered call investors do not short stock, but do short call options. It is the short option that generates the income versus a covered call investor. Login Free Trial Free Newsletter. Home Portfolio Search Features Tutorial Blog Reviews Long Trial. Tutorial Welcome Covered Call Writing Long vs. Short Call Option Covered Call Definition Options Explained Option Exercise Covered Call Example CC vs. Short Option Before we discuss covered calls, let's review the terms "long" and "short". About Contact Press Affiliates Privacy Terms Site Map.

3 thoughts on “Definition of long put option versus”

  1. aleksander-r says:

    In Optical Burst Switching (OBS) network, the entire delay is calculated based on the collection of the Burst Assembly time, the offset time, and the Propagation delay.

  2. alcoweb says:

    But when we pass other values, we no longer get true or false.

  3. amilliox says:

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