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1. when buying a call you are buying the right to purchase at a certain price. an everyday example is a deposit or a down-payment. this is Buying a Promise of the Future. you pay a "blood price" to lock in something you want.

common scenario is buying something you Really Want (like a house) so it's always followed through. but don't forget that in this is purchasing a right, not an obligation & that you can cut your losses and not complete the ritual if you realize u r summoning a demon

2. when buying a put you are buying the right to sell at a certain price. though often it's not bought with the intent to sell but as insurance. e.g. when buying house insurance it's about reserving the right to have something worth X post-disaster.

the seller is like "yeah that's not a demon, that's a dog" but the buyer is like "yeah but what IF it one day becomes a demon???" both are true b/c weather or not the dog becomes a demon depends on the will of God.

3. when selling a call you are on the opposite of scenario (1). instead of purchasing a right you are selling an obligation. this is an obligation to sell the Thing at the Price. (Thus you must have the Thing or demonstrate ability to get the Thing)

if you have the Thing ppl will agree to a pact w/ you. or if you have ton of money and can easily buy the Thing they'll also make a deal with you. (the reason the buyer doesn't just buy the Thing themself if b/c they don't want the Thing NOW but In-the-Future-Maybe)

when you act as a seller of a call you are guaranteeing a specific future for the buyer. it's a sort of middle-man role where you have Stuff and want to put that Stuff to use by using it as collateral to guarantee specific futures for other ppl.

this is an Important Role in society b/c it's part of a larger system that guarantees constant supply of things. this can range from a guarantee that the buyer will have enough Widgets to maximize profit during spikes or that a town can have enough coal in case supply lines break

when selling a call you can generate Money out of THIN AIR by being able to guarantee to provide this buffer of Stuff at That Price as long as the buyer doesn't exercise the right. if you sell a ton of calls and 99% don't exercise, you can make a lot of money from the contracts.

there is a bet that the Thing will go down in price so that the contract won't be executed. after all, why would someone want to buy something at 2 dollars per the contract when the market now has it at 1 dollar.

the requirement though is that you need to be a Source of Faith. i'm not going to buy a Guarantee of Potatoes from a carrot farmer who is going broke. I'll either choose the Rich Guy or the Potato Mogul. i have more "Faith" in them.

4. when selling a put you are creating an obligation to buy at a price. if someone is going to spend 1 million dollars planting millions of potatoes, they want some guarantee that someone is going to buy all these potatoes

this requires Faith as well. if i don't think someone can afford to buy all my potatoes why would i choose them as a business partner? i'll either choose the Rich Guy or the well... Rich Guy. (this is y business isn't some Illuminati Cabal Old Boys Club, it's just business)

this generates money out of thin air as well when i can sell my potatoes on the market b/c potato prices went up. as the buyer i paid insurance for the guarantee that my potatoes had liquidity but thankfully God was kind and I didn't need it.

--- when selling a put you are acting to guarantee a MINIMUM price. you make sure potatoes are worth something even if if suddenly no one wants to eat potatoes anymore and only want avocados. you are declaring 'I WANT POTATOES!!"

when selling a call you are acting to guarantee the SUPPLY of something. you are declaring 'I HAVE POTATOES'

both of these actions combine to make it so that future has Stuff and that the Stuff is Worth Something. this is super duper important b/c it provides a guarantee of a future with which we can use to make plans around like buying a million acres for a potato farm.

notice how "Greedy" this system of guaranteeing the future can be. it's a promise of STUFF as well as a promise of APPETITE for all that stuff. A guarantee of gluttony.

when on margin, selling a call changes to "I WILL HAVE POTATOES" this is possible b/c i don't have to own potatoes, just have enough money(or credit) to show that i can have the potatoes.

this 'naked call' truly allows me to make money out of thin air as i don't even have to own potatoes. it's risky though b/c if suddenly potatoes skyrocket in price, my loss is potentially unbounded vs if i owned the potatoes all they could do is take my potatoes

like if a cabal of redditors conspire to monopolize all the potatoes and i HAVE to buy from them at 1 million per potatoes i'd go bankrupt!

if i'm using cash as a buffer, my brokerage would force my hand into buying potatoes as soon as the obligation of the contract exceeded my cash buffer even though if in the long run i think the monopoly would break and i could buy potatoes at their regular price.

it's like how casinos won't lend you money even though theoretically you can martingale strategy your way to eventual victory given enough money/credit.

with a naked put on the other hand you are promising to buy without necessarily being able to engorge yourself on all those potatoes. ideally the market price goes up so that you never have to actually eat so many potatoes.

note that a naked put can be risky but at least the risk is capped. the contract specifies a specific number of potatoes at a specific price so at least you can't be in the hole for infinity dollars unlike the reddit monopolized potato scenario. at most you just sell a kidney.

when combined, options allow hoomans to have some degree of control over the future. this is their MAIN strength, the ability to think into the future and plan for and around it vs animals which always live in the now.

it can become degenerate though because the more one projects into the future the more one takes over the Act of Creation and the more one encroaches on God's Domain.

like if suddenly for some reason my planning creates a world that's drowning in corn i'm forced to rework my world to use all the corn. like turn it into sugar and put it in all the food even though it's not healthy for the hoomans and gives them the diabetus.

when planning for the future becomes TOO accurate it tempts one to overly commit to a "sure thing" w so many resources that the plan is Too Big To Fail. everyone just agrees to rip up the contracts b/c everyone signed it directly or indirectly. *cough* 2008 *cough*

the reasons are many. one is that the real world is messy and 3-body-problem-like with internally emergent black swan behaviors as well as externally imposed ones. another is that when projecting too far into the future it's hard to feel responsibility or connection w the thing