Buy To Open Sell To Close ✦ No Survey

It typically increases open interest , as a new contract is often being created between you and a seller. Strategic Intent:

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

You pay a premium (debit) to a seller to acquire the rights of a contract. Result: You become the "holder" or "buyer" of the option. It typically increases open interest , as a

You relinquish your rights and realize a profit or loss based on the difference between your initial BTO premium and the current STC premium. Result: You become the "holder" or "buyer" of the option

You expect the underlying asset's price to rise (bullish).

This order is used to a position you previously opened via BTO. When you execute an STC order: Action: You sell your existing contract to another party.