Help from experienced persons please...

Discussion in 'Options' started by journeyman, Mar 21, 2007.

  1. Ok, so I own PUT options on ES.

    So far so good.

    What happens if I want to sell them?

    I mean I don't want to become an option writer, right? But the CME indicates that that is what a "seller" is.

    What I want to do is just get rid of the options I already own. What is the process here? How do I tell my broker that I am selling the options I have not writing new ones?

    Sorry for the ignorance, I am sure you guys think this is obvious but I am finding it strange...
  2. *sigh* you entered a real position without knowing how to exit?

    Please tell me this is just paper trading with no real money.
  3. You would be writing the option if you got short the puts. Selling a put you already own is just closing out a position.

    Options have four trades:

    Buy to open
    Sell to open
    Buy to close
    Sell to close

    You have bought to open, and now you want to sell to close. Selling to open is "writing".
  4. Is this for real, or a wind-up ?
  5. why would it be a wind up?

    Thank you FullyArticulate for a concise reply.

    So with options you can only ever "write" if you go short?

    I am used to only two types of buy/sell - options are new to me. That's the whole story. Does it mean the A*S*S*H*O*L*E*S have to come out on parade?
  6. MTE


    Yes, writing means opening a new position with a sell (i.e. sell-to-open).
  7. nassau


    the easiest way is to call your broker and confirm your existing position and just tell them you wish to exit the trade. they will give you the current trading price and confirm to you prior what price you can exit out. by using the word exit you are not going to make a mistake and you will not get caught exiting at market

  8. My friend, you need to review the basics. Pick up an options book or check out,


    And I agree with the earlier posters, you shouldn't put on a position without understanding how to get out of it. That is a basic tenet of all investing, not just for options. Selling a put that you already own is considered a closing transaction, not an opening short, so you are not writing your put.