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Start your first leg of our on-chain activity series with Thetanuts Finance! This quest is your guide to understanding and effectively utilizing Thetanuts Finance's short option contracts. Let’s get started!

📈 ++European Options 101:++
++-European Call Option:++ This contract gives you the right to buy an asset at a specific strike price, but only the ability to exercise this right on the expiration date.
++-European Put Option:++ Conversely, this contract gives you the right to sell the asset at the strike price, also exclusively on the expiration date.
++-The expiry date and strike price++ are pivotal in determining whether your position will be profitable at settlement.

📖 ++Shorting Options 101:++
++-Short Call - Bearish Bias - 🐻 :++ Predict a market cooldown? Shorting a call option could be your strategy. This move benefits from a stable or falling price of the underlying asset, earning you premiums paid from optimistic market participants who are betting on price increases.
++-Short Put - Bullish Outlook - 🐂:++ Feeling the market will rally? Shorting a put option is a bullish forecast, allowing you to gain from a stable or rising asset price. In this position, you collect premiums from traders trading for potential declines.

🕹️ ++Execution Steps:++ 🕹️

1. Navigate to the Thetanuts Finance Trading UI. (Select Arbitrum Network)
2. Select ‘Short’ followed by ‘Call/Put’ based on your market outlook.
   (If you think the market is bullish, execute a Short Put, and if you think the market is bearish, then execute a Short Call. Think and decide accordingly)
3. Pick the option contract with the appropriate ticker, strike price, and expiry date.
4. Enter your desired collateral value. (We recommend a small amount for the purpose of this exercise)
5. Confirm and execute your trade.
6. Claim the quest executing the short options trade.

⏭️ ++Post-Execution:++
After executing your short call/put order, you'll be issued a token ($XYZ-C for calls, $XYZ-P for puts), representing your tokenised short option position. These tokens could be utilized in the Lending Module to further boost your yields. (We will practice this bit in the next quest)

🔬 ++Expand Your Knowledge:++
Dive deeper into the specifics of European options, which allow execution only at expiration, by visiting Investopedia.

🔍 ++What’s Next?++
In the next quest, we’ll guide you on using Long Options in Thetanuts Finance. Stay tuned.