This video explores the fundamental differences between long and short positions in options, helping viewers understand the contrasting roles and responsibilities in options trading. It clarifies the distinct profit/loss mechanics and highlights strategic considerations for each.

You’ll learn:

• How long options (buying calls and puts) work and what drives profit

• How short options (writing calls and puts) expose traders to risk and generate income

• The different risk/reward profiles and margin requirements for long vs. short positions

• Real-world examples illustrating payoffs and obligations for each side

• Common pitfalls and misconceptions about directional bias and assignment risk

📘 Related Exams: SIE, Series 6, Series 7, Series 9, Series 63, Series 65, Series 66
🧠 Skill Level: Beginner to Intermediate
📈 Topics Covered: Options mechanics, directional strategies, payoff diagrams, risk management, margin concepts