Buy To Open Sell To Close Info

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

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

This order is used to a position you previously opened via BTO. When you execute an STC order: Action: You sell your existing contract to another party. You expect the underlying asset's price to fall (bearish)

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 buy to open sell to close