The buyer has the right to decide whether to buy or sell the relevant assets according to the agreed terms before the expiration of the contract after paying the option fee to the seller.
After receiving the premium, the option seller loses the decision-making power and is in a passive position. If the buyer exercises the right to buy and sell the relevant assets according to the terms of the agreement before the option expires, the seller must fulfill the relevant responsibilities.
People who buy options contracts but don't close their positions are called bulls, also known as option holders. In order to close the long position of the option, the option holder can sell the same contract in the market.
A person who sells an option contract but does not close his position is called a short position, also known as an option seller. In order to close the short position of the option, the option seller can buy the same contract in the market.
Unless otherwise specified, buying or selling short positions described in the stock option reference education station are all positions that open new positions.
Options simply represent a right, that is, you can buy or give up buying a financial asset at a certain time.
Let me give you a typical example: the popular "warrant", also called turbine.
You can buy warrants and wait until the maturity date to exercise the right to buy or sell certain securities. It can also be used for speculation, of course, the latter is the reason why most people buy it! ! !