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The Language of Leverage Welcome to the options pit. It is a different beast than equities. When you buy a stock, you own a slice of a company. When you trade options, you are buying an opinion on market structure, time decay, and volatility. To survive here, you need a precise vocabulary because a mislabeled trade is a losing trade. Directional Plays: Long vs. Short The first distinction is your market bias. Are you bullish, bearish, or neutral? A Long position means you own the right to the upside. A Short position (selling) means you are collecting premium and betting...