Open Sell To Close - Buy To

It can decrease or leave open interest unchanged, depending on whether the buyer is also opening or closing a position.

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

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

This order is used to a new long position. When you execute a BTO order:

You expect the underlying asset's price to rise (bullish). It can decrease or leave open interest unchanged,

It typically increases open interest , as a new contract is often being created between you and a seller. Strategic Intent:

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. Sell to Close (STC): Exiting the Trade Most

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.