What are Short Options?

Short Options is an options trading strategy where you sell options contracts (either a Call or a Put), instead of buying one. By opening a short position, you receive an initial premium, but you are obligated to sell or buy the underlying asset if the contract is exercised by the buyer. When you sell an option:

1. You receive money upfront (called a premium)
2. In return, you promise to do something later if the buyer asks
   1. Sell assets (Short Call), or
   2. Buy assets (Short Put)

Simply put: You get paid now, but you take responsibility later if the buyer asks.