To Open Sell To Close — Buy

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

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

You expect the underlying asset's price to rise (bullish). Most traders use STC to capture the option's

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

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.

In options trading, "Buy to Open" (BTO) and "Sell to Close" (STC) are the two halves of a standard . They describe the lifecycle of a trade where you purchase a contract first and exit it later by selling it. 1. Buy to Open (BTO): Entering the Trade