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I am just starting to learn about options and about puts and calls. Traditionally, I assumed that being short on a position means having a bearish outlook to the market.

However, when you are an option writer and you write puts, in options terminology, they still call it holding a short position but as a put-writer, you want the underlying equity to rise, so that you are not assigned (the option-buyer chooses to exercise.)

Can being short also mean you could be bullish?

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Shorting basically means you sell to open a position and you buy back to close the position. Writing options is to sell to open so you are correct that you are shorting the position.

As put options are bought when you are bearish about the underlying, then yes you are correct by writing or shorting the put option you would be bullish about the underlying.

  • +1 And conversely, you can be long a put (bearish) or long an inverse ETF, also bearish. – JoeTaxpayer Jun 2 '14 at 23:48
  • Aah! Thanks! your first sentence cleared my doubt straightaway... I had the misconception that shorting always meant to be bearish. – thispatchofsky Jun 3 '14 at 0:15

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