How can one go long or short using options?

How can one go long or short using options?

• A. Buying a call option goes long, while buying a put option goes short.
• B. Buying a put option goes long, while buying a call option goes short.
• C. Selling a call option goes long, while selling a put option goes short.
• D. Exercising both options goes long.

Answer: (A)

In options trading, going long or short is about the direction you get exposure to the underlying stock, not just owning the option itself. A call option gives you the right to buy the stock at the strike, so when you buy a call you’re positioned to benefit if the stock rises—the exposure moves in the same direction as the price increase. A put option gives you the right to sell the stock at the strike, so buying a put is a bearish bet: you profit when the stock falls, which is like having a short exposure to the underlying. That’s why buying a call is described as going long and buying a put as going short in terms of underlying exposure. Exercising a call would convert your position into a long stock position, while exercising a put would convert it into a short stock position. So the statement aligns with the idea that calls are bullish (long exposure) and puts are bearish (short exposure), even though the exact mechanics differ from simply holding the stock.

In options trading, going long or short is about the direction you get exposure to the underlying stock, not just owning the option itself. A call option gives you the right to buy the stock at the strike, so when you buy a call you’re positioned to benefit if the stock rises—the exposure moves in the same direction as the price increase. A put option gives you the right to sell the stock at the strike, so buying a put is a bearish bet: you profit when the stock falls, which is like having a short exposure to the underlying.

That’s why buying a call is described as going long and buying a put as going short in terms of underlying exposure. Exercising a call would convert your position into a long stock position, while exercising a put would convert it into a short stock position. So the statement aligns with the idea that calls are bullish (long exposure) and puts are bearish (short exposure), even though the exact mechanics differ from simply holding the stock.