Closing an option position

Closing an option position out Closing out is a method of reversing the original transaction to exit the trade. If you bought a call, you have to sell the call with the same strike price and expiration. If you bought a put, you have to sell a put with the same strike price and expiration.

GCI's online trading system makes it easy to sell back the exact option which you bought. You simply find it in the Options window on your trading platform, and right-click on it to select "close". Expiration Expiration - if an option has no value at expiration, and it has not been closed out, the option expires worthless and no further action is required.

Closing Option Positions Before Expiration Day

Such in-the-money expirations will always result in a profitable underlying currency position, and this currency position can immediately be closed out for a profit if you do not wish to maintain this outright position. You can then sell this currency at the current market price for an immediate profit if you wish.

If the underlying currency rate is below the strike price, then the option expires worthless and no currency position is established. You can then buy back this currency at the current market price for an immediate profit if you wish.

If the underlying currency rate is above the strike price, then the option expires worthless and no currency position is established.