Put options are those options which will be providing the option holder the right to sell a certain number of shares before the maturity dates, and they will be selling the shares at a prescribed price which will be determined before entering into the transactions.

Call options are another form of options which will be providing the rights to the option holders to buy a certain number of shares, before the maturity date and they will be buying this shares at prescribed price which will be determined before entering into the transactions.

There are large number of speculators who are always trying to speculate on the directions of the market whether the market is going to go up, or whether the market is going to go down, and they also want to have a right not an obligation, so they will be trying to buy the put option & the call option depending upon the determination of their estimations of movement of the market and so they will be trying to buy the call or the put options which are to be exercised or they will either be lapsed because there are no obligation to exercise them.

Short put are type off short selling of put option in the option market in which the short seller will be looking for option premium gain, because he will believe that the option prices are not going to go down because the share price is going to go up and hence, He will be shorting the put option in the market and he will be trying to pocket the entire option premium.

The maximum gain which will be arising out of the situation will be the overall option premium which had been pocketed by the seller and the maximum loss will be the overall strike price after it has been deducted by the option premium.