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<blockquote data-quote="wojak" data-source="post: 1369357" data-attributes="member: 19147">In order to sell to close a call option, don&#039;t you need to have already purchased that same call option at some point in the past? How can you sell to close a position you haven&#039;t yet opened?Just going off of the original post (which doesn&#039;t have too much info) it seems as though they were referring to &quot;selling to open&quot; call options on stocks they felt bearish about. In this case, the buyer of that call option would be entitled to purchase 100 shares from you at a predetermined strike price at some point in the future. Meaning you would be obligated to sell to them at that price should they exercise the contract. If the stock jumped up 1000% over the course of the contract, you would have to buy those 100 shares up at the higher price (assuming you didn&#039;t already own them) and sell them for pennies on the dollar to the buyer of the option.I&#039;m no expert either, so let&#039;s keep going if there&#039;s a misunderstanding on my end. I have an interest in learning more about these things.</blockquote>

[QUOTE="wojak, post: 1369357, member: 19147"] In order to sell to close a call option, don't you need to have already purchased that same call option at some point in the past? How can you sell to close a position you haven't yet opened? Just going off of the original post (which doesn't have too much info) it seems as though they were referring to "selling to open" call options on stocks they felt bearish about. In this case, the buyer of that call option would be entitled to purchase 100 shares from you at a predetermined strike price at some point in the future. Meaning you would be obligated to sell to them at that price should they exercise the contract. If the stock jumped up 1000% over the course of the contract, you would have to buy those 100 shares up at the higher price (assuming you didn't already own them) and sell them for pennies on the dollar to the buyer of the option. I'm no expert either, so let's keep going if there's a misunderstanding on my end. I have an interest in learning more about these things. [/QUOTE]

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