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The Position Limit rule says that an investor may not hold an open position in more than the appropriate limit on each “side of the market,” meaning bullish or bearish. For example:

Suppose a stock has a position limit of 7,500 and a client has already purchased 6,000 calls. What may he now do? Well, they could buy no more than 1,500 additional calls because that would take them up to 7,500. However, they may also violate this rule by writing 1,500 puts since either position is considered bullish. As for the bearish side, they may also buy puts and/or write calls in any combination up to 7,500.

The bullish strategies are Buying Calls and Writing Puts, while the bearish strategies are Buying Puts and Writing Calls. (Opposite actions in the opposite options.)