Buy To Close Option Example Apr 2026

You don't want to wait for expiration, so you place a order. You pay $50 to buy the contract back. Status: Your position is now 0.

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You Sell to Open (STO). You receive a "premium" (cash) and now have a negative position (e.g., -1 contract). You don't want to wait for expiration, so you place a order

If the stock moves against you, you BTC to prevent further losses. you BTC to prevent further losses.