A position wherein a person's interest in a particular series of options is as a net seller (writer) (i.e., the number of contracts sold exceeds the number of contracts bought). Also, an investor is in a short position when the investor sells a stock that he or she does not own. The investor is looking for the stock to drop in price so that he or she can buy it lower than what it was sold for and make a profit on the difference. Note: Options involve risk and are not suitable for all investors. Clients should understand thoroughly the risks and opportunities associated with trading options and should read the document entitled Characteristics and Risks of Standardized Options before engaging in any options transactions.