Chapter 02 · Section 2.1

Price Rise- Put

                  FUTURES & FORWARDS   CALL OPTIONS       PUT OPTIONS 
 
If you expect a 
fall in price          SHORT                SHORT            LONG
(Bearish)     

If you expect a rise in price LONG LONG ..... (Bullish)

With a put, if you expect the price of the underlying asset to rise, you: A put gives its holder the right to sell and its writer the obligation to buy a specified quantity of the underlying asset at a specified price. If you expect higher prices, would you rather buy or sell the underlying?