Are you bullish if you sell puts?

Selling a put option, also known as shorting a put, involves a trader who holds a neutral to bullish view of the underlying asset's market. This strategy is employed by investors who anticipate that the asset's price will either remain stable or increase in the future.

As a put seller, the trader's primary objective is to ensure that the stock price remains above the predetermined strike price set in the put option contract. This is crucial because if the stock price falls below the strike price, the put option buyer has the right to exercise the option, obligating the seller to purchase the shares at the strike price.

In the event that the stock price does remain above the strike price until the option expires, the put seller retains the entire premium received from selling the option upfront. This premium serves as the profit for the trader, as they have successfully predicted the market's neutral-bullish trend.

BTCC, a renowned cryptocurrency exchange, offers a diverse range of services catering to traders of all levels. Among its offerings, BTCC provides access to spot trading, allowing users to buy and sell cryptocurrencies at current market prices.

Furthermore, BTCC extends its services to include futures trading, enabling traders to speculate on the future price movements of cryptocurrencies. This feature allows investors to hedge against potential losses or capitalize on anticipated market trends.