You might BTC right before an earnings report or a major news event to avoid volatility.
If you’ve made 50–80% of the max profit, many traders BTC to "take the money and run."
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.
Because the stock went up, that $100 Put you sold is now less valuable. It is now trading for only . The Closing Move (Buy to Close):
You might BTC right before an earnings report or a major news event to avoid volatility.
If you’ve made 50–80% of the max profit, many traders BTC to "take the money and run." buy to close option example
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. You might BTC right before an earnings report
Because the stock went up, that $100 Put you sold is now less valuable. It is now trading for only . The Closing Move (Buy to Close): buy to close option example