Option refers to the right to buy or sell a certain subject matter or option.

Put option means that the buyer of the option pays a certain premium to the seller, that is, he has the right to sell a certain amount of the subject matter to the seller at the exercise price within the validity period of the option contract, but he has no obligation to sell it.

A short position is a contract that must be hedged or delivered. Put option is a right that can be exercised when it expires, or it can be abandoned when it is unfavorable to itself, and the loss is the option premium.

The bulls bought a contract in the futures market and were in a long position.

Similarly, a call option means that the buyer of the option pays a certain amount of royalties to the seller, that is, he has the right to buy a certain amount of the subject matter from the seller of the option at the exercise price within the validity period of the option contract, but he has no obligation to buy it.