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Sell to Open |
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Sell to Open Informal; to sell an option contract in order to open a position. That is, when one sells to open, one is beginning to implement an option strategy that requires a net short position in order to be profitable. For example, one may write a call expecting it not to be exercised, allowing one to keep the premium (or sale price). Alternatively, selling to open may be the first of several steps in a complex strategy. See also: Sell to close. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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