Buy to Open, Sell to Close

So you've bought a put on a company.

When you're selling to close, does this mean you are exercising the option, buying the underlying stock, and then selling it to close your position??

Just a yes or no will suffice. Answers will be greatly appreciated.

 

no.

once you sold the put and you are back before you bought it (+profit, -comm)

 

you BOUGHT a put to open your position as stated.
your selling to CLOSE the position.
you are now FLAT or OUT of the position.
no exercise or finger twidddling needed.

 

Sorry for all the questions... but

say I want to create an order where if:

the bid price on a particular call goes up 13 points ($.13) from .40, I place a limit order of (.55) that is GTC

Would I use a trailing stop?

 

'Place a limit order' to do what? Obviously it's sell.

"13 points" is $13, not 13 cents

Why would you use a trailing stop if your exit price is $0.55?

I do not believe trailing stop orders are allowed for options.

Mark