Sell To Close

Sell To Close

A phrase used by many brokerages on the street to represent the closing of a long position in option transactions.

Notes:

An investor can sell to close either (or a combination of) puts or calls and thus will be relinquishing ownership of the option(s). The distinguishing factor of a sell to close is that the option position must have been held long in the account during the transaction.

See also: Buy, Buy to Close, Buy to Open, Call, Long, Open Interest, Option, Put, Sell to Open, Short