Which action corresponds to going long via options?

Which action corresponds to going long via options?

• A. Buying a call option
• B. Buying a put option
• C. Selling a call option
• D. Selling a put option

Answer: (A)

Going long via options means taking a bullish position on the underlying by purchasing an option. The most direct way to do this is buying a call option. A call gives you the right to buy the asset at the strike price, so when the market price rises, the value of the call tends to increase, letting you profit from the upside or by selling the option for a higher premium. Buying a put option is also a long option position, but it profits from a price decline rather than a rise, so it doesn’t represent going long on the asset. Selling a call option or selling a put option creates obligations as the writer and typically expresses a short or neutral stance, not a long exposure.

Going long via options means taking a bullish position on the underlying by purchasing an option. The most direct way to do this is buying a call option. A call gives you the right to buy the asset at the strike price, so when the market price rises, the value of the call tends to increase, letting you profit from the upside or by selling the option for a higher premium. Buying a put option is also a long option position, but it profits from a price decline rather than a rise, so it doesn’t represent going long on the asset. Selling a call option or selling a put option creates obligations as the writer and typically expresses a short or neutral stance, not a long exposure.