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Sell to Close
(redirected from Selling to Close)

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Sell to Close
Informal; to sell an option contract in order to close the position. That is, when one sells to close, one is liquidating the position and ending whatever option strategy one was using. This may occur because the investor has already extracted whatever profit is going to result, or because the position was not profitable in the first place.


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The motivation for this volume was a customer selling to close their Feb puts and buying to open puts in March.
With DRYS trading just shy of the 7 level in afternoon action, a healthy portion of today's volume likely consists of traders selling to close their profitable positions.
 
 
 
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