The option seller or writer is said to have the 'short position' of an options contract. In fact, it is not an option for the short position holder, but an obligation.

Question

Quizplus · Accepted Answer

The option seller or writer has the obligation to buy or sell the underlying asset in accordance with the terms of the option contract, whereas the option buyer has the right, but not the obligation, to exercise the option. Therefore, the short position holder has an obligation, not an option.

The Option Seller or Writer Is Said to Have the 'Short