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S&P 500 Futures - Jun 24

CME
Currency in USD
Disclaimer
5,210.00
-3.75(-0.07%)
Delayed Data

S&P 500 Futures Discussions

I am new at all of this, and I googled my question but didn\'t get a full answer I wanted. I understand what a call is, and I understand what a put is. What I do not understand, is what it means by \"buy a call to open\", \"buy a call to close\", \"sell a call to open\", \"sell a call to close\". Also I do not understand \"buy a put to open\", \"buy a put to close\", \"sell a put to open\", \"sell a put to close\". I know what a call and a put are, but nothing else about buying and sellng one to either open or close. Any help? Thank you in advance.
Doesn't look like to me she said she was trading, just trying to gain some knowledge. Got to love ignorant, snarky comments.
Dear Samantha, whole books are written about this subject. Lots of stuff on google. As a long time successful options guy, I will give you some advice: don't do naked options. Stock options are best done when you actually want to own the stock. Index options, like our beloved SPX, are pure cash settle type options. Please learn about "Spreads" and "Condors". The pure gamblers around here "buy to open" options, and hope those options increase in value. If lucky, they will "sell to close" them for profit.. . My favorite gamble is to "sell to open" a call spread. In the case of SPX, I sell a 2100 call, and buy a 2150 call. As long as SPX winds up below 2100, I keep my money. To get out of this spread, I would need to "buy to close". Your account can become very complicated with an array of different longs and short calls, at differing expirations. have fun learning!
Unlike other investments where the risks may have no boundaries, options trading offers a defined risk to buyers. An option buyer absolutely cannot lose more than the price of the option, the premium. Because the right to buy or sell the underlying security at a specific price expires on a given date, the option will expire worthless if the conditions for profitable exercise or sale of the option contract are not met by the expiration date. An uncovered option seller (sometimes referred to as the uncovered writer of an option), on the other hand, may face unlimited risk.
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