> For the complete documentation index, see [llms.txt](https://docs.divergence-protocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.divergence-protocol.com/user-guide/short-options/open-shorts.md). # πŸ’§Open Shorts To open a naked short position on either calls (spear tokens) or puts (shield tokens), liquidity providers must deposit collaterals to the option pool. Later, the deposited collaterals will be utilized and reserved for settlement when option tokens are sold to traders. Liquidity positions can sell both calls and puts while liquidity is active. As premiums from selling a call can settle a put, and vice versa, an LP's short exposure is only limited to **net shorts in either calls or puts**:
Short CallsShort Puts
  • Select a price range for calls.
  • The lower price bound has to be higher than the current price of calls.
  • This position sells more calls than puts
  • Exposure is limited to net shorts in calls
  • Selects a price range for puts
  • The lower price bound has to be higher than the current price of puts.
  • This position sells more puts than calls
  • Exposure is limited to net shorts in puts
### βž• Provide Sell Liquidity with Collaterals
Specify your desired option terms - underlying, collateral, expiration and browse available strikes. 1. Switch the "BUY/SELL" status to "SELL". 2. Select "CALL"πŸ“ˆ or "PUT"πŸ“‰ to go short. 3. If you didn't find pools with desired strikes, you can create a new option pool below. 4. Select the price ranges at which you would like to short options. 5. Enter the amount of collaterals you wish to deposit to the naked short position. 6. Complete the transaction. ### ### πŸ‘β€πŸ—¨View Open Orders Once you have provided sell liquidity using collaterals, you will see it in your "Dashboard-Open Orders" section. You can also view the details of your order, including the number of options you have sold.
The following key details of your open order will be available for you: * **Status:** The short status after netting calls and puts that are sold. Learn [here](/overview/protocol-basics/digital-options.md#what-is-put-call-parity). * **Deposit:** The amount of collaterals initially committed to the position. * **Fees:** Total amount of transaction fees you have earned. * **Premium:** The amount of proceeds you received for selling the options. * **Sales Volume:** The gross number of calls and puts you have sold. * **Withdrawable:** the amount of collaterals withdrawable upon liquidity removal. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.divergence-protocol.com/user-guide/short-options/open-shorts.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.