Option Example: Buy To Close

You collected $300 and paid $50 to get out. Your total profit is $250 . Why use "Buy to Close"?

AI responses may include mistakes. For financial advice, consult a professional. Learn more buy to close option example

If the stock moves against you, you BTC to prevent further losses. You collected $300 and paid $50 to get out

Think of it as the "undo" button for a trade where you started by collecting cash upfront. buy to close option example