Long and Short positions

Can some please explain Long Call, Short Call, Long Put and Short Put briefly ? Is there any kind of trick or shortcut to remember these strategies? They driving me crazy. :angry:

Long = Buy

Short = Sell

Call = Buy

Put = Sell


Long Call = Buy the right to buy an asset

Short Call = Sell the right to buy an asset

Long Put = Buy the right to sell an asset

Short Put = Sell the right to sell an asset


Is this clear enough? We can elaborate further if you reply this :slight_smile:

The one buying is the one with LONG pockets.

You also need to know the payoff diagrams for each:

  • Long call: _/
  • Short call: ¯\
  • Long put: _
  • Short put: /¯

Ascii magic!

Long = Buy

Short = Sell

Call = Buy

Put = Sell

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Long Call = Buy the right to buy an asset (FROM SOMEONE)

Short Call = Sell the right to buy an asset (SOMEONE CAN BUY FROM YOU/ FORCE YOU TO SELL)

Long Put = Buy the right to sell an asset (TO SOMEONE)

Short Put = Sell the right to sell an asset (SOMEONE CAN SELL IT TO YOU / FORCE YOU TO BUY)

——————————————————————————————————–

Is this clear enough? We can elaborate further if you reply this :slight_smile: