There are four basic options trades:
Long call – you have the right but not obligation to buy an asset at an agreed price on a future date.
Short call – if the long call holder exercises the option to buy, you have an obligation to sell the asset at an agreed price.
Long put – you have the right but not obligation to sell an asset at an agreed price on a future date.
Short put – if the long put holder exercises the option to sell, you have an obligation to buy the asset at an agreed price.
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