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Buying and Selling Options

How long and short options work

Long & Short Options

Now that we've covered long and short stock, let's talk about long and short options. As you may remember,
are contracts that guarantee a share price to their owner. Calls reserve a purchasing price, and puts reserve a sale price. Since we are essentially dealing with an agreement to trade rather than physical shares, "long" and "short" have slightly different meanings when it comes to options.

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