Selling Options
As well as buying options (going long), a trader can choose to sell options (going short). Do not confuse selling a put with selling a previously purchased call.
Selling a put is an equivalent strategy to going long (buying) the stock. The trader's goal is to benefit from a rising stock price.
Selling a call obligates the seller to deliver 100 shares of a security at a set strike price.
Selling a call is an equivalent strategy to shorting (selling) a stock. The trader's goal is to benefit from a falling stock price.
Selling a put obligates the seller to deliver 100 shares of a security at a set strike price.
TradeWithPros does not utilize selling options as a trade strategy.
NOTICE: Buyers of options receiver a right, sellers of options obtain an obligation. Rights do not have to be exercised, obligations must be met.