Sell To Open

Sell To Open

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

Notes:

An investor can sell to open either (or a combination of) puts or calls and thus will be holding the option(s) short. The distinguishing factor of a sell to open is that the option position must not be 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 Close, Short