Long Call Option Strategy
Long call is a bullish option strategy with one leg. It has limited loss and unlimited potential profit. [more ...]
Long Put Option Strategy
Long put is a bearish option strategy with one leg. It has limited loss and limited profit (although the profit can be very large if underlying falls a lot). [more ...]
Short Call Option Strategy
Short call (also naked call or uncovered call) is a bearish option strategy with one leg. It has unlimited loss and limited profit. [more ...]
Short Put Option Strategy
Short put (also naked put or uncovered put) is a bullish option strategy with one leg. It has limited loss and limited profit (although the loss can be very large if underlying falls a lot). [more ...]
Call, Put, Long, Short, Bull, Bear: Terminology of Option Positions
Terminology of option positions may be confusing. This page may help clarify it. Sometimes people have a long put position (they own puts) and they say they are short. They mean their exposure to the underlying price movement is similar to a short position in the stock (they expect to make a profit when the stock falls). But in fact the security they really own is the put option. For them to make a [more ...]
Long Call vs. Short Put Differences and When to Trade Which
This page explains differences between long call and short put option positions. Using an example, we will compare their cash flows and payoff profiles. We will conclude with recommendations when to trade which strategy. **What Long Call and Short Put Have in Common.** Long call and short put are among the simplest option strategies, each involving just a single option. Both are bullish, which means [more ...]