Buying to Open and Selling to Close

If you buy to open a position by buying a call or put – you are long an options contract. If you’re long a call or put, you hope to sell the options contract at a higher price – i.e. you’d sell the call or put to close the transaction. If you sell to open a position by selling a call or put – you are short an options contract. If you’re shot a call or put, you hope to buy the options contract at a lower price – i.e. you’d buy the call or put to close the transaction.