STC

anglefly

[Here's](https://imgur.com/a/a6ydzEj) the example they give. Let me see if I understand OI vs. volume correctly. * If the transaction consists of a BTO and STO across the counterparties, OI is increased by 1. * If the transaction consists of a BTO and STC or STO and BTC, OI stays the same. * If the transaction consists of a BTC and STC, OI is decreased by 1. * Each of the above transactions increases volume by 1.

Sharaku_US

Then do an ITM straddle because it ain't gonna stay in place one way or the other. If you watched today's SPX movement you'll see the seesaw during the day and just time your STC.

BoardForkbeard

Seriously. Also, all the paid internships nowadays to gain experience and more quickly decide on what one wants to do. Couldn’t afford to do non-paid internships during college so I came out with no “applicable experience” per all the rejection letters. First real job I had started at $38k in a HCOL area and took me 3 years to find after working low paying STC jobs. Got laid off earlier this year and feel like I’m right back where I started.

greytoc

I also just realized that I may not have mentioned something that may be obvious that impacts your decision. Most option contracts do not get exercised. The reason is that if you exercise your put contract - you are converting that long put position to a shares short position and you end up with being short 100 shares of BA. That's kinda why most people will STC (sell to close) a long option position when their target is reached.

Terrible_Champion298

Correct. When rolling a short put or call, you are dealing from the Ask of the BTC spread and the Bid of the new STO. If the midpoint of the BTC spread is lower than the midpoint of the STO spread, that is the starting point of negotiation for a Net Credit (profit) roll. Net Debit (loss or additional cost) is the inverse BTO/STC mid spread situation. You’d be paying out instead of taking in. Even or Net Even is a no cost (except commission & fee) swap of old for new position.

trading_eq_optns

That's for exercising only. You can BTO an SPX contract, and STC it 1 second later if you want. Same as with SPY options. Example; you buy to open 5 contracts SPX 5170C, it goes up, you like your profit, you sell to close those same 5 contracts. The same way you would with SPY options.

Earlyretirement55

Thanks for pointing out watching EU market close, so this is what I did (unfortunately paper trade only). **The Trade:** * **Market Open:** Key European markets closed negative, suggesting the S&P 500 (SPY) might follow suit. The VIX, was also trending upwards, further indicating a potential drop in SPY. * **Action:** At 9:49 EST, I bought put options (BTO) on SPY at 519, expecting the price to go down. * **Exit:** When the VIX reversed course and started dropping at 10:49 EST, I sold the put options (STC) for a 130% (1.3x) profit. * **Second Entry:** Since the VIX continued its downtrend, I bought call options (BTO) on SPY at 515 at 11:00 EST. So far, this call is showing a 15% gain.

Earlyretirement55

Monday could have given you a chance to go your way; no? or your decision to STC Friday was based on theta decay over the week-end eating away the option left over value?; or you were just sticking to your daytrader rules and closed it same day despite of the potential recovery on Monday? So much value in your reply, thank you.

Icy-Nectarine4828

STC $WBA 20c 4/26 @.38 from .25 (52%) and STC $CHWY 16c 4/19 @1.28 from .65 (96.9%)

ThePeoplesBard

STC 100 x QQQ 444P at 4.04 per. Bought at .13. Mwahahah one hour trade is a 40 bagger

PapaCharlie9

There are only four terms you need to use: 1. Buy, you clearly understand that already 1. Sell, the opposite of buy 1. Open, entering a position 1. Close, exiting a position You can either buy or sell to open. To close, you do the opposite action of when you opened. So if you bought to open, you sell to close. If you sold to open, you buy to close. Then every other terms is just shorthand for one of those combos. For example, "write" is just shorthand for sell to open. Naked is also just shorthand for sell to open. Covered means that when you sell to open, you have enough shares of the underlying (stock or whatever) to cover the short. If you sell 1 call, you need 100 shares to cover (usually). Naked means uncovered, so no shares. As already noted, naked is just short hand for sell to open, so it only refers to selling. You cannot buy to open a "naked" call. > When I just buy options from someone, I can later sell them WITHOUT having to worry if I have the underlying stock? Basically I have no obligations to do anything if I sell them and they are later exercised correct? It's best to spell out exactly what you are doing. If you **buy to open**, you don't need stock to cover. Covering only applies to sell to open trades. When you **sell to close**, you are not selling to open, so again covering doesn't apply. BTW, all of the combos have abbreviations, so you can use BTO, STO, BTC, STC for each combo to save typing.

mlt-

Selling 2 calls and buying one. That is a strategy on it's own. If I understood you right. You need to sell to close then sell to open the contract you bought earlier and also buy one few strike above. On a side note, I don't know whether brokers would allow spread that has multiples of a same contract that both sell to close and sell to open. For example, with Vanguard, I have to be very specific whether STC or STO...but Vanguard won't let spreads other than over the phone...

doomgrin

I don’t use robinhood but it should clarify Basically if you have bought to open or BTO, then you can sell to close or STC. Some brokerages will sell to close your options if the expiration is in the money and getting close and you don’t have enough money to exercise the option (robinhood does this) And yes you can sell to open a contract if you have 100 shares (if you don’t want to take on a large amount of risk by selling uncovered calls), however I’d recommend not getting into that as much without doing some more research If you stick to just buying to open/selling to close then the maximum risk is just 100% of the cost of the contract you bought Here’s a decent article that goes a little more in depth https://www.nasdaq.com/articles/buy-to-open-vs.-buy-to-close%3A-investment-guide#

hit_that_hole_hard

My man if you aren’t aware 100 shares per contract is the standard you have a ways to go. I’d suggest buying a new/used Series 7 study guide from a reputrd company (Kaplan/STC, etc.) and hitting the options chapter hard. The options chapter will be the longest chapter in the book.

Outside_Job_3190

The idea of selling NVDA calls and hoping the price drops in this market would be terrifying. I was watching a buy on a 940 call that was 0DTE this AM that was going for as little as 87c and went up to $9 within minutes/hours. Seems to me that NVDA's volatility would make buying and STC that in a single day a relatively easy way to turn a profit? But perhaps a smarter person can tell me what I'm missing.

StuffAffectionate666

STC $CGC 4c 4/19 @2.40 from .23

StuffAffectionate666

STC $JPM 195c @3.60 from .59 🤑90k profit

RushHour2k5

So, if you're on Discord, message @Dawg and ensure you have the correct permissions. You'll then see a channel for SPY Scalper. Starting at 9:30 AM, the bot will monitor the trends and notify for either buy-to-open (BTO) or sell-to-close (STC). The bot isn't perfect; take profits where you can and use Dawg's charts under the chart review channel. The bot will always issue an STC at 2:30 PM ET and stops notifying for the day due to increased volatility.

Neither_Assistance82

I had a similar thing happen to me... I figured post here since I'm starting to do Iron Condor option trades using my TD Ameritrade account which is now owned by Schwab. I'm starting to get suspicious of what Schwab marks as "margin sell out" orders on my account. At first I was alarmed because I had a short 180 strike put expiring on February 16th. Schwab put in a sell order for $0.01 just prior to close even though Apple hit a minimum of $181.67 on that day. So this one I just wrote off as silliness because it was small... Fast forward to just this past weekend, I had a 12/13/14/15 Iron Condor for LSPD stock. Since the stock was showing support at 13, I figured hold onto it until close because of the low liquidity on the 13 put (bid 0.05, ask 0.15 morning time the day before close). It dribbled just below 13 down to 12.8 at close. When Schwab put in the "margin sell out" order at 3:55PM, LSPD was at 12.84 and the resulting trade was as follows 12 Put STC @ +0.03 13 Put BTC @ -0.73 14 Call BTC @ -0.33 15 Call STC @ +0.03 I understand the logic of Schwab "protecting" themselves, but I can't imagine even the dumbest retail trader executing such a trade right at close. Why would you need to do a margin sell out for BOTH a short 13 put AND a long 14 put? At the very least the 14 call should have been left to expire with it being so far OTM. And so what if by some dark coincidence LSPD happened to swing below the protection level of 12? Worst case in such a dark scenario I would have had to sell LSPD at a big loss and had a cash liability on my account which is limited by the fact that it couldn't go below zero. If I were allowed to let it expire, my cost would be 0.20 per share. Instead there is an ironic coincidence that Schwab executed the trade to use the entire 1.0 margin based on the put/call spread of 1 per share. It really smells to me that Schwab are overusing margin sell out trades as a way to expand their profits by forcing higher trade volumes and higher profits for market makers (who are also from Schwab). Of course in the future I've learned the hard way not to trust Schwab to handle trade closeouts. I'll for sure put in closeout orders several hours before market close to prevent this from happening. Regardless, I can now see why many retail traders have trouble making money, especially when the companies holding their accounts are working against them!

DrWorstCaseScenario

Update: 10:36 am BTO 1x NVDA 3/8 880c @34.88… ~11 am set a trailing stop loss order at 2.00 based on bid… 11:15 am triggered and STC @42.56… So 22% profit. Not bad

DrWorstCaseScenario

Glad I bought 1dte spy calls yesterday. Sold three of five and made 80% profit in total. Riding the Last Two as house money till near close. BTO 5x Spy 3/6 509c @0.99 each yesterday STC 3x Spy 3/6 509c @2.95 just now

OkAnt7573

This is a good reminder that unless you BTC / STC your positions prior to regular market close you have risk in the after hours.

paladin258

With your position sizes, you should trade SPX options instead of SPY options. You'll pay 10x less commissions. For just this trade in commissions, with 5500 contracts, you'll pay 0.65x5500x2 (for BTO and STC) = 7150. If you do SPX options, u can just buy 550 contracts, and pay only $715 in commissions. Now check how many contracts you've traded this year, and moving to SPX you are essentially going to save 10x on commissions. You can thank me and buy me a beer :) (don't ask me how I know 😜) Outside commissions, this position is most likely gonna not print. Adjust your stop losses on Monday and don't let it expire worthless. Live tontrad3 another day.

papakong88

Your call will expire tomorrow. It will be automatically exercised if it is ITM. If you expect the price of the stock to fluctuate a lot, simply STC the call because the call price will track the stock price. You may be able to sell at the top.

ScottishTrader

Buy to Open (BTO), then Sell to Close (STC) the same option. "buying one sell $2 1/17/2025 call contract" is phrased improperly as you can't 'buy a sell option'. Since you BTO the 2 strike 1/17/25 call and then STC the same strike and date, this should have closed it.

emeraldream

STC AVGO 1300c March1st call 7.50--->22.50

grems8544

Early exercise by the option buyer, which does introduce risk to the option seller, is real and exists. No question. Early exercise of a long OTM put by the option buyer is not a common strategy. You forego any extrinsic value in the long OTM option if you elect early exercise from your brokerage. The path to profitability is influenced by whether the long OTM put holder owns the underlying shares of their long put, meaning, they are using the long put as a hedge against a profit in their long stock position. They still forego the extrinsic value of the long put when they elect early exercise, and they will be obligated to deliver their shares at the strike price of the long OTM put option. This would be less than ideal. If the long OTM put holder does NOT have the shares in their book, then when they elect to early exercise they are now borrowing the shares at the short strike level. They will need a drop in the market price (since they are OTM) in order to recover and break even. I think it uncommon that a long OTM put holder would elect early exercise in either instance, as they lose the extrinsic value of the long put option on the STC order and of course, they can sell their current shares at the market price. Because of this, the short put seller in a Wheel strategy will rarely, if ever, see an early assignment of a short OTM put. If you are aware of other scenarios, please let me know because these are the only scenarios that I can envision for the put seller (short) and put buyer (long). ​ Calls are a different animal. Early exercise of an OTM long call is more common, especially in the use case when the dividend is higher than the extrinsic value of the OTM call option, and the ex-DIV date is near. I've had this happen to me, and had my long shares called away in this instance.

papakong88

Yes, you can roll SPX out before it expires at 3:00 pm CT or let it expire and STC a new expiration before 3:15 CT. The STC transaction will require new margin. Instead of QQQ, you can sell XND or NDX. XND is European like SPX so it is cash settled. Its value is about 0.41 times QQQ so you can sell 2 XND for 1 QQQ.

papakong88

Maybe it’s easier to exercise the put than to sell the stocks and STC the put. Maybe he could make a few pennies more. The only thing that we know is someone took OP’s lunch. His dividend was hijacked.

wolfhound1793

When a person BTO or STO a call the counterparty will almost always be the Options Clearing Corp (OCC\*). Then that call is bought and sold potentially 100s or even 1000s of times over its lifespan. The OCC can write calls at will and can likewise "close" calls at will by buying them off of the exchange and pairing them with a written call. None of this process relies on you, the retail trader. You are entirely irrelevant to this process, and you don't ever create an option, you just BTO, STO, BTC, or STC a position. If the option is ITM at expiration it will always be exercised by someone. Technically, a person can call to not exercise an option from their broker, but the OCC will exercise that option if they can do so profitably which they almost always can. If you BTO a call, and then STC that call before it expires, SOMEONE had to BTO or BTC a call in order for you to STC. You can't sell a call without someone else buying a matching call. And likewise, you can't STO a call without someone else BTC or BTO. Or BTO without someone STO or STC. Or any other combination you want. And just as a further note, if you STO without BTO a call that is just taking a short position on that option which is its own strategy. If the call you STO is ITM at expiration than it will be exercised and you will be forced to pony up the shares. Look up Covered Call for an example. \*Options clearing corp, not to be confused with the office of the comptroller of the currency also OCC. Since this is stocks not options * BTO = Buy to Open * BTC = Buy to Close * STO = Sell to Open * STC = Sell to Close * ATM = At the Money * ITM = In the Money * OTM = Out the Money

LabDaddy59

For any of those interested, I think I'm going to roll down. Example: STC NVDA January 16, 2026 $400 Call @ $292.40 BTO NVDA January 16, 2026 $600 Call @ $180.00 4 contracts Cash in of $116,960 Cash out of $72,000 Net cash of $44,960 This "works" for me, as I look at it as if I were simply sitting here today without the existing call, and wanted to buy a LEAPS, I'd buy at/slightly in the money.

Sea-Respond-6734

What you’re saying ties into a question I’ve been wanting to ask for a while. I’m not going to assume this is what OP was doing, but personally I’m not trying to end up ITM when I buy options. I’m trying to make gains faster than I would with stocks and with less upfront capital. A delta of 36 would mean that currently it’s equivalent to owning 36 shares of NVDA, which would take over $21k to do through purchasing the stock. So is your comment really an accurate criticism if we give OP the benefit of the doubt and assume maybe he was just trying get like 10% return and then STC? Btw that’s for your contributions to this community your posts have taught me a lot

JerryFletcher70

Correct, that would be a Sell to Close to get out of the one you Bought to Open. The codes STO, STC, BTO, and BTC are basic ones to learn. Those are Sell to Open, Sell to Close, Buy to Open, and Buy to Close. Whatever you do to Open or get into a position, you'll do the opposite to get out and once you are out, you're done. An option leg is built on Selling/Buying to Open/Close Calls/Puts and multiple legs can be connected. Like a Poor Man's Covered Call is a BTO call in the future mixed with STO calls on a shorter time frame. You'll see people doing condors, saddles, strangles, collars, and all sorts of other things, but those are just names for certain combinations of multiple option legs mixed together to achieve a window around what you think will happen and limit your losses if you are wrong. When you see the term rolling, that is a combo of a closing and a new opening. That's just a user-friendly way to do multiple steps at once.

ScottishTrader

Sorry to say this, but it is shocking how many of these posts we're getting from new trader who don't seem to know the basics . . . With that said, you Bought to Open (BTO) and now can Sell to Close (STC). You BTO for $1.31 and the current price is showing as $3.00 to STC. Doing the simple math, $3.00 - $1.31 = $1.69 x 100 = $169. You would collect $169, minus any fees, by STC at the $3.00 price. You can hold if your analysis is that the stock may move up more, but since this is an OTM strike if the stock does not keep moving up then theta decay will erode the price meaning some or all of the profit may disappear. You should close when the profit amount your trading plan indicates is hit. Presuming you do not have a trading plan that spells things like this out, then you should seriously consider making one before trading again.

Bitwise_Gamgee

BTC the $4.5 short call at the open and let the long $5 call ride or BTC the $4.5 short call and STC 50% of the contracts of the long call. I don't have a position, but I always thought SAVE was massively oversold.

PapaCharlie9

> Even a basic vertical spread can be expensive to get in and hard to get out when you have to pay the ask and sell to the bid. Twice. Except that you don't usually have to do that. Unless the structure is very bizarre and has no market on the Complex Order Book, you're only dealing with one bid/ask at open and one bid/ask at close, for the spread as a whole. While a wide bid/ask spread is never great for anyone other than the market maker, it's not the end of the world. I'm personally more concerned about legs that have no bid that I need to sell to close. While there may still be a market above the no-bid, it can be tough to fill a STC for even the minimum increment. Speaking of interesting discussion on here, I frequently find that complaints about wide bid/ask spreads are more self-incriminations of their greedy expectations than actual issues. Like I recall one guy who posted about wide bid/ask spreads and provided an example where he was *only* able to get $.05 over parity for his ITM put.

Terrible_Champion298

There are two option types: calls and puts. There are two option strategies within each type: long calls and long puts, short calls and short puts. In either a long call or long put, you PAY premium, and the basic goal is to exceed the chosen strike by expiration. This is called being In The Money (ITM). In either a short call or short put, you Receive premium, and the basic goal is to Not exceed the chosen strike by expiration. This is called being Out [of] The Money (OTM). To open a long option, you Buy To Open (BTO) and pay the premium. If that option needs closing before expiration, you Sell To Close (STC). To open a short option, you Sell To Open (STO) and receive the premium. If that option needs closing before expiration, you Buy To Close (BTC). This is the very very basics of options trading.

papakong88

You should be able to STC this one with no problem. B/A = 0.25/0.35. Use a limit order to sell at the mid-point of 0.30, then change it down to the bid a penny at a time (if penny increment is allowed).

Stock_Barron_WSFU

I’ve been trading at the break into the money point. For example as SPY was etching into 474.98 ish ITM was .80 I BTO 50 contracts and STC at 1.31. Would have been nice to hold on a little longer, but I made money and called it a day.

PapaCharlie9

It's a little hard to understand what the situation is, since you didn't quote the bid/ask spread you were contending with, along with exact spot price. What it looks like is that the price was *below* 640 for a 600 call and you got $40 for the call, so *better* than parity. I'm not sure what the problem is, if that is the case. When most people post about illiquid ITM contracts, it's because the bid is *worse* than parity and they don't want to give up any of their intrinsic value, but can't fill a STC at parity.

PapaCharlie9

> On 1/3/24, I sold a TSLA 2/16/24, $210 PUT and bought a 2/16/24, $205 PUT for a $90 credit, excluding fees. Thanks for providing all the trade details, that helps. FWIW, you should specify credit or debit when you talk about any trade, particularly spreads. Your title doesn't make it clear if you were talking about a put credit spread or a put debit spread. You can write the position in conventional notation like this, saving typing: -1 TSLA 210/205p 2/16 @ $.90 The negative quantity makes it clear it was a credit trade. It would just be "1" if it was debit. One thing to pay attention to is how many dollars of credit you get per dollar of spread. You have a $5 wide spread, but you only got $.90 of credit. That's a pretty terrible risk/reward ratio, since you are risking $4.10 to win $.90. At around 20 delta, that's a losing proposition. As a general rule of thumb, **the break-even credit per dollar of spread is roughly the same as the delta of the short leg.** So if you have a 20 delta short put, you want at least $.20 per dollar of spread, so that's a $1.00 credit for a $5 spread. And that's just the break-even credit. Ideally you should get more than $1.00. > 1 - How do I determine when I am at 50% profit? Am I looking at the price spread between the legs and once that drops to $45, I have reached 50% profit? Not the quoted price, as that is just an estimate. It's the actual fill price you can get, as those can differ. But yes, if your credit is $.90 and you want to close at 50% profit or better, you close when the fill price to close for the spread as a whole is $.45 or less. Spreads are traded as complexes with a bid/ask for the complex as a whole, not as individual legs. > 2 - When closing do I execute both, the BTC and STC, at the same time or leg out of each side separately? Pros vs cons for each method? BTC on the spread as a whole. BTW, notice that I left all prices in per-share numbers. It's easier to keep all prices on the same per-share basis if you are looking at price quotes.

Mobe-E-Duck

*sigh* first of all, the anti ice system being discussed doesn’t need to be automatic simply *on* which can be done *automatically, irrelevant of whether there is any ice accumulation.* secondly literally any airplane with anti ice can have automatic anti-ice based on airspeed. Thirdly, the c208B has an STC for anti ice based on a $3 laser pen on the interior of the aircraft. I don’t understand what you don’t understand.

ScottishTrader

When Buying to Open (BTO) an option for $1.00 and it can be Sold to Close (STC) for $1.01 or more, the trade is profitable and is how buying options work. BTO lower and STC higher makes a profit. A BTO call option will show a profit if the stock moves up by some amount, which will vary based on the various factors, such as how far OTM the option is and the time to expiration. A good trading plan will include when to BTO, and at what price to STC to reach the profit target or loss amount that limits risk to the account.

Ok_Set_2042

For starters, read and understand what extrinsic and intrinsic values are. Then work on time decay. Close your studies out with implied volatility. To answer your original question, if it hits $3 on Tuesday and you STC, you won the small lottery....if it hits $3 on 1/19 at the close and you're holding on to it still, you lost 999 USD.

papakong88

Based on your new info. Roll out to Jan 26 with a spread order - BTC U Jan 19 140 Call and STO U Jan 26 60 call at the MARKET. I am not sure of your position. If I am wrong then do STC and BTO at the MARKET.

papakong88

Your title said loss but your text said gain, what is it? Are you long or short? Do you want to STC or BTC? Give more details so you don't get hurt by the wrong suggestion.

A_hole702

1. BTO 2. STC 3. Profit

PapaCharlie9

> Which type of order do you use to automatically close volatile positions that are bound to revert quickly when you don't have time to manually manage things? That's a tough spot to be in. Order management is fundamentally a time vs. money trade-off, so if you can't afford the time, you're going to have to spend/lose money. For example, a market order means fill my order ASAP **regardless of cost**. So you'll get the fast fill that you want, but you run the risk of leaving a lot of money on the table. > Thing is, for example normal GTC STOP orders Can't be used on positions with gains. Stops only work for moves that make the position lose money. You can use a trailing stop for a position with gains, but again, they only trigger on an unfavorable move. > while GTC LIMIT orders could not get filled Yes, that's the trade-off with limits. Now that said, you can set the limit whatever your absolute bottom dollar price would be. Say the situation is you bought the call for $1 and now the bid is $3 (thus your 200% gain in your example). If you will accept any gain over your cost and it is a nickel increment contract, you can set the GTC LIMIT STC ORDER to $1.05 limit. Since a limit fills for the limit price *or better*, it should fill for a $3 bid immediately. However, if the bid drops down to say $2.50, you would get stuck with that $2.50 price, just like for a market order. Setting the limit low kind of splits the difference between a market order and a limit order. A market order could fill for a very low bid, like $.50, but a limit at $1.05 would never fill at $.50.

greytoc

When you buy a contract, you have the option to exercise the contract. With a call contract, that means you have the right to buy the shares of the underlying stock at $80. Since the price of the stock is now $83. You have a profit of $3 per share if you decide to sell the shares. However, most people will simply "sell to close" (STC) the contract. The contract should be worth at least $3 plus some extrinsic value because there is still time left before the contract expires. Generally speaking - it is in the interest of an option trader to simply STC the contract unless you believe that the underlying stock will continue to increase before expiration. However, the extrinsic value of the contract will continue to decay and lose value as expiration gets closer. Since you don't know what you are doing - you may want to consider locking in the profit unless you believe that the stock will stay above your strike price.

papakong88

If you buy to open (BTO) a call, say the Jan 19 XYZ 95 call, you have the right to purchase 100 shares of XYZ for 95 each on or before Jan 19. You can give up this right by selling to close (STC) this call. You can exercise the right to buy shares early (i.e., before expiration) by instructing your broker. The call will be automatically exercised if it expires ITM by more than 1 cent. Your broker may require you to have the funds to purchase 100 shares of XYZ at all times. They have the right to liquidate your call if it is ITM and you have insufficient funds.

PapaCharlie9

> Would rolling the option work? And then try to sell that new contract by year end? No. A roll is just a sell to close combined with a buy to open, so you still have the sell to close problem. Why not just do the GTC limit at $.01, since you are not allowed to do GTC market? It's effectively the same thing for a STC.

PlanOk7678

The telecommunication group Telefonica is going to explode. The Saudi STC fund bought 10% of the shares weeks ago. 5% belongs to Caixa. Another 5% is held by BBVA and 4.5% by Blackrock. Following STC's entry into the shareholding, the Spanish government has been considering the possibility of entering the company for weeks with the aim of maintaining stability and today it has announced that it is going to buy 10%. Furthermore, blackrock will have to undo short positions if it does not want to stop making money with its shares. A coordinated movement of minorities in conjunction with the purchases carried out by the Spanish government could take the price to the moon with the assurance that the Spanish government will have diamond hands. Just in case I'm going to buy a package

papakong88

Follw Scottish Trader's advice: Buy to cover the short, SPY is 469.85 now. And then STC the 471 call, it is 0.35 now.

zebra0dte

For the same strike, gamma is higher for the closer dated option than the one further out. That means you get more movement in the delta when the underlying price changes for the one you're holding vs. the one you're rolling to. And if you're rolling by STC your current call and BTO a newer call further date out, then it makes sense to roll while we're going up. So I'd say now is a good time to roll out.

psychoCMYK

No, exactly. I'm saying that if he unwinds the protective side of his spread (STC $400P) before the productive side (BTC $410P), he is taking on 31x more risk.

ScottishTrader

Yes, long (bought) options make a profit if bought to open low and sold to close at a higher price. Ex. BTO for $1.00 and STC for $1.10 would result in a .10 or $10 profit. Note that when trading short (sold) options these are sold to open higher and bought to close lower to make a profit. STO for $1.00 and BTC for .90 would result in a .10 or $10 profit. The breakeven price typically applies at expiration and is included in the bought and sold price if that price is higher such as in your example.

kekiel

Moonshot must be a broker term. Your last paragraph defines it as I know it. My struggle was trading stopping at 2:30pm ET. Some profit taking I did, didn't make the closing, so I was short the funds to get trade 1 done. Trade 2 requires a Call STC to clear ahead of the 1st & 2nd trades. Tomorrow. Thanks for your wisdom. My stated question was enough for you to get the jist and nailed it.

greytoc

> the exchange considers it an offset rather than two separate unrelated transactions being carried out right? From an options trader's perspective, it's pretty simple. You open a position either by buying a contract (BTO = buy to open) or writing a contract (STO = sell to open). To close a position, you either sell the contract (STC = sell to close), or you buy back the contact (BTC = buy to close). It takes 2 transactions to make a round trip. ​ > i sold the call position ,what happens to the person i bought the call position from ,are they paired up ? What do you mean ?- option contracts are fungible. And there are liquidity providers that provide the liquidity. That is why there is a concept of open interest in options. The amount of open interest doesn't have to match the transaction volume. ​ > i wrote this short contract can i sell my position to someone else ? Please clarify your question - if you are asking what happens if you write a contract that is executed - yes - that means that someone bought your contract.

greytoc

So - in general, most strategies on profitable long call positions is to STC or sell to close. The reason is that there is still extrinsic value in the options until expiration. While the additional time value will continue to decay as expiration gets closer, the reason why traders don't exercise is because the exercise includes this additional theta premium. You end up paying extra in premium to exercise. When long call options are itm, you generally would only exercise the call early if the underlying was nearing ex-div date and the dividend payment is higher than the premium to exercise. If you have a long thesis on the underlying, and you want to eventually own the stock, there are much better strategies. For example, you can turn your position into a synthetic long position and write put contracts. If you look at the P&L of a short put and long call, it mirrors a synthentic long future. Since you are interested in writing covered calls, you could have also written puts until you are assigned. So you could STC your existing call position and write ATM put contracts. If you are assigned, you can then write calls.

greytoc

No! STC - sell to close the position.

PapaCharlie9

Since it's a stop, it should only work against valid open orders. I wouldn't worry about a stop for quantity 10 filling for 10 when you only have quantity 8 open. If you want to worry about something, worry about the stop being gapped over entirely for the entire quantity. Or the stop being canceled by your broker as an invalid order once the quantity is no longer covered. I am curious about how an OCO is handled for a partial fill. That might vary from broker to broker, or even from type of trade to type of trade within the same broker. It sounds like your OCO did *not* trigger for the partial fill. That's interesting, as it introduces an element of uncertainty. Ideally, each OCO ought to be treated as a quantity 1 pair independently, so if 2 of the STCs are filled, the OCO should be triggered on quantity 2 of the stops and cancel them, leaving quantity 8 pairs outstanding. It doesn't sound like that is what happened for you. Second best is for *any* fill on one leg to cancel the entire quantity of the other. So your partial STC fill should have canceled the entire 10 stops. Are you sure that didn't happen?

papakong88

Exit- yes. Entrance – maybe no. You have 10K and you are buying 700 calls at 0.14 for 9800. If your calls are 1.20 ITM you can STC for 74 K in profit. This is your best case scenario. However, your broker will view this differently. He sees this as your worst case scenario because you do not have the resources for an auto-exercise. He assumes no STC. He may block your order. Think small – like 10 calls to begin.

BigBoiBenisBlueBalls

BTO 100 SPY $435c 11/10 @ $0.72 STC 100 SPY $435c 11/10 @ $5.33 🤑🤑🤑

papakong88

SOFI = 6.85. STC 12/8 9.50 put for 2.67 and then BTO 12/8 6.50 put for 0.30. Or do nothing and buy a roll of TUMS.

papakong88

You cannot exercise early but you can “Sell to Close” (STC). You may get more if you STC. At this time, 1 hour before closing, the 4350 call is 31.59 points ITM but the price is 34.30. So you get 2.71 more by STC.

Arcite1

>TL;DR Unfortunately with IBKR it's a BUY order or a SELL order. There are no BTO, STO, BTC, STC order selections. If your platform has the BTO, STO, BTC, STC selections this will not apply to you. I could be wrong, but my understanding is that as far as the exchanges are concerned, there's no such thing as a "to open" or "to close" order. A buy order is a buy order, and a sell order is a sell order. But many brokerage platforms--for example, Thinkorswim--make this distinction within their software, and can recognize whether an order will have an opening vs. closing effect on your positions, and will, for example, cancel a buy-to-close order on a short option if you happen to get assigned. The difference is that apparently TWS lacks this recognition capability, so they left your buy order open even after you'd been assigned.

PapaCharlie9

> Unfortunately with IBKR it's a BUY order or a SELL order. There are no BTO, STO, BTC, STC order selections. Please edit the OP and put that line as a TL;DR as the very first line of the post. It will head off a lot of misunderstanding. You might also add that you called customer support and confirmed, so you aren't just guessing or being stupid about the platform. Second, there are two takeaways: * People should weigh this limitation against all the advantages of IBKR TWS and decide if it is a dealbreaker and find a better broker. * Given this limitation, don't leave standing orders open near expiration, particularly overnight.

twi1i96tr

Hi papakong88. Thanks for the comment.... Unfortunately with IBKR it's a BUY order or a SELL order. There are no BTO, STO, BTC, STC order selections. They are treated as a BTO or a BTC etc depending on whether or not you hold a position that matches, or more correctly, is the opposite to the order you submit. When I submitted my order after close late Thursday I was short 2 puts and if things went well it would have been treated as a BTC but because the options orders don't execute in the post and pre market it sat there until 7:30am Friday morning where it did get filled instantly on the gap up BUT.... overnight I was assigned on both the short puts so when the order to close executed it was executed as a straight BUY order because there was no other short puts to cover. So I ended up with 2 LONG puts WAY OTM (about $10) with an expiry the same day AND 200 shares at a cost base about $10 above current market price. That is why I thought I would do this post to warn others and maybe save some people some $$$. Anyway, just more tuition towards MY continuing education. Ha ha... Best of Luck, Twilighter.

SPXLiquidated

It's normal when you STC it will show the counterparty risk. You should be closing for a credit. Your initial thought it correct for long options; it is defined risk. Hope this helps.

toydan

bunch of 5 and 7 2025 calls, so many shares, and picked up 5 Dec 17 calls last week limit order just hit and STC 4 just now. will let 1 run and not selling any positions https://preview.redd.it/p5k76wy0zxxb1.jpeg?width=1170&format=pjpg&auto=webp&s=e3d3d62e6e8bc438c007e6d3b092921e7c15e01f

greytoc

>I thought “shorting” the company was what I wanted to do. To be "short" on an asset means that you want the asset to decrease in value. Versus being "long" where you want the asset to increase in value. People tend to throw around those terms so it can sometimes cause confusion if it's not used accurately. My understanding of what you want to do is to profit in the decline of a company's market value. Ie. you think the price of the company stock will go down. So by being long on a put contract - you want the value of the put to go up. A put is a derivative where the party that is long on the put has the right to "put" shares of the underlying to the counterparty - so that means that put values go up when the underlying instrument value goes down. Does that make more sense? ​ >So if I Buy to Open, that means I am buying the right to sell X amount of stocks at the strike price on the date of expiration, right? If you buy to open a "put" contract - yes - that is contract. With a put - you are buying the right to sell or "put" 100 shares of the underlying stock for every 1 contract to a counterparty. ​ >So how does that differ from if I’m writing the contract instead? When you buy the put - a counterparty - someone else is writing a new contract or selling an existing contract. An options contract is "contract" between 2 parties. That's why they are called contracts. For example - I primarily trade options as a writer. ​ >Does that mean someone will buy the contract from me and ideally it is deep ITM so the value of the contract goes up while I own it? Yes. ​ >And then does that mean STC is just exercising the option earlier than expiration? No - if you buy a put contract and you don't have shares to "put" to a counterparty - it normally makes more sense to sell the contract to close the position.

IronLusk

I don’t know, I’m still a bit confused. I thought “shorting” the company was what I wanted to do. But maybe not. I understand the concept of options I guess but I’m still a bit lost on this. So if I Buy to Open, that means I am buying the right to sell X amount of stocks at the strike price on the date of expiration, right? So how does that differ from if I’m writing the contract instead? Does that mean someone will buy the contract from me and ideally it is deep ITM so the value of the contract goes up while I own it? And then does that mean STC is just exercising the option earlier than expiration?

greytoc

Not quite sure what your question is but I'm guessing you are asking about what buy to close/sell means. You open an options position by either (1) buying to open = BTO or (2) sell to open = STO. You close an option position depending on whether you own the contact or whether you wrote the contract. BTO means you want to be open a position and be long on the contract. STO means you want to write (sometimes people say short) the contract. To close a position if you hold a contract - you "sell to close" or STC. To close a short position if you wrote the contract - you "buy to close" or BTC.

SPXLiquidated

This course sounds poorly made. Hedging is a risk managements strategy by typically take another side of the trade. [Investopedia](https://www.investopedia.com/trading/hedging-beginners-guide/) There are different ways of hedging by selling the opposite side of a position (common in hedge funds), through options, even a highly correlated asset (pairs trade), or futures. >Hedging ensures that the return you earn is the risk-free return plus the excess return of your portfolio over the market." I don't even know where this person/course is going with this, especially since hedging is such a vague term with multiple ways to hedge a position. * Where are they getting this risk-free return theory from? And why do they think you will receive the risk free return rate (currently \~5%) from hedging? >I'm unsure how this "avoids the costs of selling and repurchasing the portfolio" If you are up 50% YTD on a position, one may hedge completely if they want to take directional risk off. Example would be, you buy 100 shares of SPY, make 50%, sell short (STO not STC) 100 shares to flatten the position. You will have the position but it is ultimately canceled out. Hedge funds may do something like this as a way not to pay short-term capital gains while canceling risk. They may want to wait until the original position is prevue to long-term capital gains (less taxed in US atleast). There are ways retail traders can do similar things like doing a collar through options, or buying/shorting futures if it is the same product (100 shares of SPY, short 2 /MES contracts). There is slippage, cost, and contango that comes with the various methods of hedging. >Stack and Roll I never heard the term "stack and roll." The term rolling, though, is essentially closing a current position to open a new one, which are typically the same underlying. >Does this mean you simply do not exercise your option upon expiry, They are talking about a futures contract roll, not an options roll, or even a future options position for that matter. >We can roll futures contracts forward to hedge future exposures All this means is that they are rolling a futures contract that is expiring soon to the next active month, essentially to keep the trade (or hedge) alive. >Initially we enter into futures contracts to hedge exposures up to a time horizon This is just telling you why one would enter a futures position, out of the many reasons. They entered a futures position as a hedge for certain time frame. This may be to delta hedge, reduce volatility, balance the portfolio, etc. >Just before maturity we close them out an replace them with new contract reflect the new exposure Similar to what I said about the first bullet on rolling futures, it is a way to keep the "hedge" alive by rolling to the next active month. Hopefully this helps a bit. Is this a college course or something? From the stuff said, it seems poorly conveyed.

Earlyretirement55

If my long put is in the money can I close the contract immediately (STC) sell to close ? even if there’s no buyers?

SPXLiquidated

It's defined risk so just hold it, regardless. If it rallies Mon/Tue, STC for a smaller loss \~70-50%.

HarleyQuinn3049

you can almost trade everything on XTB. STC, CFD; Crypto, Forex ect. I use it for many years and nothing to complain.

jinpiss

STC CRWD 165p

Thereian

Oh yes, most likely tomorrow or Tuesday. May take a few days more. The test aircraft was flying around IAH (United hub) and Denver (Southwest hub) last week. Most likely final demo flights to show the final product and negotiate contracts ready for signing shortly after receipt of the STC.

Woahgold

If you don’t want the shares you need to STC that position. Every broker I’m familiar with auto executes ITM option positions.

Friendship4Every1

I don’t know why RH doesn’t let you close both at the same time - it’s weird. But how about use your brain a little here? BTC 30 short calls. STC 30 long calls. Then do the next 30. Then 40. Split it up.

XIII_THIRTEEN

I see what you're getting at but it's still wrong. He said STC 5000 shares and Etrade decided to STO 5000 shares. Those are obviously and demonstrably completely different trades.

DrWorstCaseScenario

STC 3 of 5 qqq 8/30 374c @2.22 which covered the position plus 30% profit. Will ride last two overnight to see if the melt up continues.

Thereian

Where do you see that they’ve already received the STC? All I see is the following which has been up for a while: “The FAA has assigned Supplemental Type Certificate (STC) project number ST16454AT-T for AerAware, indicating the agency’s acceptance of AerSale’s STC application and the commencement of the STC certification process.” They’re still waiting on the STC, they only have a dedicated number (/case) pending and under review.

nyc2pit

ATC doesn't make that call, the pilot does. Most airlines have a minimum visibility that has to be reported by the weather system at the airport in order to allow them to take off or even attempt a landing. If it's truly zero visibility, they're going to have to divert or they're not going to take off. Throughput is going to decrease when the weather's bad no matter what you do. Even with this system. That said, delays, cancellations, reroutes and diversions as well as holding and missed approaches are no doubt costly to the airlines. I'm sure they have that data. There is a point at which the system makes sense. But I have no idea of knowing what that point is for the airlines. 737 is the most common commercial plane in the US I believe, so make sense to start with that. They said on the website the STC was already obtained. So what approve were they waiting for from the FAA? My other question is how this system compares to the other ones already on the market. Both in terms of usability and cost. This is the first helmet mounted one, but I'm not sure that that's truly a big advantage. Maybe a disadvantage if it's a more fragile system. Look at Gulfstream and falcon Jets. These companies have had FLIR and synthetic vision capability for years. I have no idea what those systems cost, or why they couldn't be adapted to airliners. Or why they haven't been adapted to this point? Before going all in, I would have to be a lot more comfortable with what benefit this gives the airlines over what's already on the market that they seemingly haven't taken advantage of to this point.

Thereian

Thanks, I agree with your feedback. Also not a pilot but I’m close to a few pilots and am familiar with engineering of comparable complex systems, so I understand the tech. I think I got so caught up in the history of the delays and the financial backdrop/setup that you’re right, I skipped the “how this product adds value and why it is needed.” The value add was clear to me from Day 1, so I’m surprised with the level of pushback here. Just cause there’s an autopilot doesn’t mean ATC will let someone land blind… and even if they did, throughput and capacity will plummet. Anyways, yes. The value add here is very real. One plane getting delayed has knock on effects. For the price per unit that has been proposed (400k, perhaps 500-600k now with inflation), this would pay for itself quickly. Particularly for airlines in foggy hubs like San Fran, Seattle. Note: two of their three potential launch customers were Alaska Airlines (Seattle) and United (SFO), so I consider that validating of this thesis. The pending STC is for the 737. They’re doing it right by targeting the mass market planes first. They plan to do the A330 too, but the 737 should eat up their manufacturing and installation capacity for the next few years while they go through that process.

nyc2pit

So OP - after haranguing you a bit, I went to their website and did some more reading. It is actually a pretty interesting product. I assume you're not a pilot. Because you didn't do a real good job explaining it, but your thesis may not be wrong! The deal is, when the weather is bad, the pilot can descend so far using instruments (the ILS approach) But at some point has to be able to transition from the instruments to visually seeing some portion of the runway environment - usually the lights. At that point they finished the landing visually. So this thing, The idea would be that this improves their ability to make that transition to visual. You can make a case for this. Especially at places that are often affected by low visibility - ex San Francisco, Pacific Northwest, the east coast in the winter, etc. The real question is how it boils down to the numbers. It's expensive obviously, but an aviation that's all relative. I'm sure the airlines could tell you how many missed approaches / go arounds avoided would pay for this system in terms of saved fuel. Not to mention The cost associated with diversions, disconnections, etc. There is definitely a number at which the system starts to make a lot of sense. Now I personally have no idea what that number is. But this is interesting. They have an STC which allows them to install it on at least some models of planes. So they seem to be going about it the right way. Exactly what FAA approval are they waiting on?

Schnozzbear_y

Oh, Honestly. Don’t hate that.. If there is a run up tomorrow afternoon like there was a few days last week then STC and sit out earnings. Or buy market stop straddles with a tight stop loss 

Brother-of-Jared

You are correct. The BTO orders were fine. All four STC orders were filled in error.

dudestir127

If I understand right, it was the STC that the CBOE says was filled in error, not the BTO. If I understand things right, and I might not, you might be SOL. If it was the BTO order that they're invalidating, I'd think they should be obligated to reimburse how much you paid to buy the contracts.

WetFlare

They won’t override your limit BTC/STC? That’s good to know

Schnozzbear_y

STC my UPST puts 

The-Wizard-of_Odd

.... STC ratings for the separation walls, that wouldn't be an issue This is a big one, at least IMHO, annecdotal example but I'm positive this resonates with thousands.. sister lives in a 6plex townhouse, owners on both sides. Owner #1 has a baby and are quite the noisy group in general, they can hear everything, baby crying, showers, toilet flushes, sex, arguments. It baffles me that the builder didn't address this voluntarily, baffles me more that the city hasn't forced them to build a sound barrier in. It'd not even that expensive... In contrast, my suburban home is shockingly resistant to external noises, masonry construction and distance (45 feet to next home) basically for 95% of the time it's total silence. higher density living is significantly more efficient in many ways, but to many of us suburban sfh 1/4 or 1/2 acre lots still very much offer a more comfortable life and significantly more privacy Tldr, hardcore soundproofing between units would boost interest but it would take time to remove the general negative stereotype.

Cool_Addendum_1348

For Team … I sold 1 call 8/4 $180 for ~$1150. (Forgot I opened the 8/4 position when IV spiked for great premium). I let the shares get called away. I only owned these 100 for ~3 weeks and made a lot of $$ in just a few weeks on stock price and calls. Yes I missed out on upside. Didn’t expect the huge spike. The other shares are for the 8/18 $180 call. Not sure if I’ll roll. If the stock takes a little dip, I’ll sell more puts…maybe for $170. Had 8/18 $145 and $150 puts that I BTC for $10 after the big spike…sold these last month when the stock was down for great premium. I STC the 8/4 $157 P after the stock dipped this past week for a $250 profit…was sweating that one … diamond hands. Glad for the aapl pull back …just rolled my calls and sold puts. Now I have to figure out how I’ll roll amat calls. How was your week?

NormandyPark0

Under Robinhood's wash loss assumptions, why would you not get hit with a wash loss when a limit order received partial fills, even all at the same price? See text below from their support: "\*When an order receives multiple partial fills, each fill is considered its own Tax Lot. And each tax lot can now be subiect to (or receive) a Wash Sale. Example: Customer places a BTO for 10 contracts of MEOW $50 Call, at a limit of $2.50. The order receives a fill for 3 contracts, 2 contracts, and 5 contracts. If they then STC these 10 contracts at a price of $1.50, there is a loss, as well as a Wash Sale. This Wash Sale will be applied to the other tax lots from the original purchase."

FloridaMann_kg

BTO 50 255 weekly tsla calls averaged 7.70 STC 50 tsla calls 15.60 average. This is why I’m a net buyer of options overall

Own-Library1165

Solid strats, recently making money seemed to be a little too easy with calls, sounds like you like to have a lot better risk management, with my portfolio size im not able to play those closer atm farther out DTEs just yet, I’m actually down pretty bad currently missing these runs has hurt a little could’ve easily 3-4x my whole portfolio if I just remember that the first week of July usually trades higher than June but looking back doesn’t matter as much as moving forward. I don’t STO any options, only STC. Once I have 50-100k I will start selling CC and 1T+ market caps for passive income. Thank you for your input definitely helps hearing what other people thought process is in those moments of uncertainty. Finding good calls has been getting easier but never did I think the exit points would just as or more challenging to nail down. But instead of all in all out I like the rolls for more opportunity and then just batch selling. I’d have a hard time batch selling because I try to get the most out of each trade possible I need to start learning and teaching myself that it’s just not realistic to buy 10 contracts and get the highest ask on all those contracts.

Butterfliesonvenus

Lmao! It is memeable for sure. Agree, I STC 3 them with earnings coming up with week, left 1 runner.

jbindc20001

You will be able to STC the option in the morning assuming the premarket doesn't change your position. The current median price for the option is 1.57. The current strike puts the profit at 1.60 if exercised. Stocks will trade pre-market unlike options so the current market price will likely be higher or lower then it is now. You could alternatively sell a 6/16 16.50 CC which has a current median price of .34 which will lock in an extra .24 of profit less fees.

patrickswayzemullet

could you rephrase this? > if there's orders there no gotten fills that way on same days before ? I think you and I are confusing each other because this move is so mysterious. If you want free advice you are better off sharing the cost basis and the current issue. There is a reason why my first question back to you was "index or stock", because apart from the settlement differences, if this was a stock, yes very plausible obscure stocks don't have open interest at 3:50PM (or whatever time near expiry). This whole BTC, STC, BTO, STO is just retail language to make it easier. In the system nobody knows you are doing that. They just know you are bidding a long call. For your end, you are buying identical call so that -1 and +1 cancels and "closes", but it's not reflected in the computer. So that means if nobody is buying (or selling), yeah it won't get filled. Apps nor the House will never accept 0. For index and popular stock you could overshoot your asking price and someone will take it. But I can also tell you right now if it is barely OTM, popular stocks will not have 0.05 asking price. They will have 0.15 or 0.25. You actually have to be very careful near expiry around "partial success" like this, because when exercised they will dump you shares at a certain cost basis, but if the shares go down more, then you don't get paid the short leg $$. You may turn decent partial win to smaller win or break even...