Sell To Open (How to Open a Short Option Position)

When trading options market participants have four different basic ways to place an open order or a close order. Sell to Open (STO) is one of the two types of options open orders that can be used by an options trader to start a new trade. The other open order type is Buy to Open (BTO). Sell to Open refers to the beginning of a short position, either a call or a put option. Any new options contract

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Buy To Close Covered Calls Early

Do you want to improve your investment skills? A covered call strategy might be a technique to increase your portfolio’s investment income while maintaining the long position on the shares of stock you already own. You don’t have to be an investment specialist to benefit from this option approach, but it’s a good idea to grasp the ins and outs

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Covered Calls Selling (How to Use the Options Strategy)

Selling covered calls is a tried-and-true strategy for increasing income, reducing volatility, and diversifying both equities and fixed income core strategies. Selling covered calls is the practice of selling (writing) call options while also owning shares of the underlying stock. Combining options and stock positions can provide investors with distinct investing exposures. The fundamental appeal

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