When it is the seller's intent to reduce or eliminate a long position in a given Option.
A transaction to eliminate a long position.
A transaction whereby an option holder sells an option identical to one previously purchased, effectively terminating his rights as an option holder.
A transaction in which the seller's intention is to reduce or eliminate his long position in a stock, or a given series of options.
A transaction in which a speculator who had previously purchased an option intends to liquidate the position as a holder by selling in a closing sale transaction an option having the same terms as the option previously purchased.
A sale of an option that has the same features (series) as an option previously purchased to affect a liquidation of the option position. When an investor wishes to buy an option, the order is placed as a "buy to open." Conversely, when closing the position, the investor places an order to "sell to close." See: Closing Transaction; Options; Option Series