In this article:
Overview
When you own a long option, you can sell it to close your position (a "sell to close" order) before its expiry date. This allows you to realize any gains or limit losses without exercising the option.
Understand order types
When you place an order to sell a long option, you can choose from different order types:
- Limit order: This order type allows you to set the minimum price you're willing to accept for the option's premium. Your order will only fill if the option's price reaches your specified limit or a better price.
- Stop limit order: This order type lets you set a stop price that activates your order and a limit price that sets your minimum acceptable price.
- Market order: This order type sells the option at the best available price in the market at the time you place your order.
Sell a long option
Follow these steps to sell an options contract that you own:
- Log in to your Wealthsimple app
- From the Home tab, tap the holdings banner
- Select the option you wish to sell
- Tap Sell at the bottom of your screen
- Choose your desired sell type from the Order type menu
- Enter the required fields for the sell type
- If applicable, choose your desired account and tap Review
- Review your order details and Place order
- Log in to your Wealthsimple account
- From the Home page, scroll down to Holdings
- Select the contract you'd like to sell
- On the right side of the screen, select the Sell tab
- Choose your desired sell type from the Order type menu
- Enter the required fields for the sell type
- In the Account field, select the account from which you want to sell the contracts
- Select Review
- Review your sell details and select Submit order
Options trading fees
Wealthsimple has a $0 per-contract fee on all successful buy and sell orders. Learn more about options trading fees and taxes.
Related articles
- Enable options trading in your investing account
- Understand options terminology
- Options trading fees and taxes
- Buy a long option
- Sell a covered call
- Buy to close a covered call
- Manage and close options positions
- Use auto-sell for options
- Understand options exercise and assignment
- Trade options in a margin account
Comments
0 comments
Article is closed for comments.