ChartBender Options Trading
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Getting in and out of the short position
There is only one way to be short an option: you have to sell it short (i.e., "sell to open"). But once you've sold an option short, there are three ways in which you can exit your position:
  1. Get assigned (This is not within your control. This happens when the owner of a long option exercises the option.)
  2. Close the position by buying the short option back
  3. (a.k.a. "covering")
  4. Let the option expire