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Options Obligations

When one BUY an OPTION (whether PUT or CALL) they have a right to force another to take an action but, are not obligated to do so.

When one SELL an OPTION (whether PUT or CALL) they can be force to take an action and is obligated to do so.

To simplify:

When you BUY you have a right. When you SELL you have an obligation.

 

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