Do options expire at open or close?

According to NASDAQ, options technically expire at 11:59 AM Eastern Standard time on the date of expiration, which is a Saturday, oddly enough. Public holders of options contracts, however, must indicate their desire to trade no later than 5:30 PM on the business day preceding the option expiration date.

Can options be sold to close?

The option can be sold to close the position. A sell to close order may be made with the option ITM, OTM, or even at the money (ATM). Traders will typically sell to close call options contracts they own when they no longer want to hold a long bullish position on the underlying asset.

What are options & how do they work?

Options are available on numerous financial products, including equities, indices, and ETFs. Options are called "derivatives" because the value of the option is "derived" from the underlying asset. When you trade stock, you exchange ownership in a company.

What is a buy-to-close option?

There is a nuanced difference between a buy-to-close option and a buy-to-cover purchase. The former refers mainly to options, and sometimes futures, while the latter typically refers to stocks only. The end result is the same in both cases. Essentially, it is the buying back of an asset initially sold short.