When you buy a call or put option contract the total premium amount you pay for it will be debited, or transferred out of, your brokerage account. For this reason, buying an option is called a debit transaction.
On the other hand, whenever you sell or write a call or put option you’ll receive a premium, with the total premium amount credited, or deposited into your account. Therefore, selling an option is called a credit transaction.
It is important that you get familiar with the terms debit and credit because we will use them a lot when you’re introduced to many of the more complex option strategies like spread trades.