Buy - To Open Sell To Close

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

You expect the underlying asset's price to rise (bullish). buy to open sell to close

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. Most traders use STC to capture the option's

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