Buy To Open Sell To Close Info

Most traders use STC to capture the option's remaining extrinsic value (time value and volatility) rather than exercising, which only captures intrinsic value. Comparison Summary Master the Basics: 4 Key Options Trading Strategies

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. buy to open sell to close

It can decrease or leave open interest unchanged, depending on whether the buyer is also opening or closing a position. Most traders use STC to capture the option's

You expect the underlying asset's price to fall (bearish). 2. Sell to Close (STC): Exiting the Trade buy to open sell to close

You expect the underlying asset's price to rise (bullish).