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Old 12th August 2012, 10:58 AM
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Default Shorting Options?



Is it possible to short the options ? Is that equivalent to writing an option. Is there anything apart from stock movement that I need to keep in mind when doing this ? Further, is it possible to short the option across days? That is sell today buy tomorrow.
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Old 12th August 2012, 05:06 PM
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Originally Posted by ijay View Post
Is it possible to short the options ? Is that equivalent to writing an option. Is there anything apart from stock movement that I need to keep in mind when doing this ? Further, is it possible to short the option across days? That is sell today buy tomorrow.
Shorting options and writing options is the same thing.

"An option writer's profit is limited to the option premium that he gets, but he can lose any amount of money if the trade goes wrong."

That's the most important thing to keep in mind while shorting options.

Yes, you can repurchase shorted options on the next day.
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