This week's question: Can you go into "buy to open," "buy to close," sell to open," and "sell to close" for options trades?
If I believe the price of Apple will go up, I would buy to open a call option.
This means I pay for the right, but not the obligation, to call on Apple shares — from the call option seller — should they appreciate.
If I sell to close a put option, I'm booking a profit on Apple shares after they've declined.
I will sell to close the contract I bought to open and buy to close the contract I sold to open (both trades are "to close").
Persons:
Jim Cramer, Dave M, Jim, Squawk, Virginia Sherwood
Organizations:
Apple, they've, CNBC