I'm trying to understand the concept of sell to close price. Could someone explain what it means and how it's determined in the context of trading options or other financial instruments?
7 answers
GangnamGlamour
Mon Dec 23 2024
Selling call options involves specific strategies for investors in the financial market.
Filippo
Mon Dec 23 2024
When an investor chooses to "sell to open" a call option position, they are essentially betting that the stock price will not rise above a certain level.
GliderPulse
Mon Dec 23 2024
The level in question is determined by the option's strike price, which is set when the option is first created.
CryptoTitan
Sun Dec 22 2024
If the stock price remains below the strike price, the investor has the opportunity to close their position.
DaeguDivaDanceQueen
Sun Dec 22 2024
This can be done by "selling to close," which involves buying back the option from the market.