What are the possible order types for an option order?

The possible order types for an option order are:

  • Buy to open: a buy order to open is to initiate a new option position
  • Buy to close covered: a buy order to close a previously written sell to open covered or sell to open uncovered option position with an underlying security or option
  • Buy to close uncovered: a buy order to close a previously written sell to open covered or sell to open uncovered option position without an underlying security or option
  • Sell to close: a sell order to close a previously opened buy to open position
  • Sell to open covered: a sell order to write an initial option position with an underlying security or option
  • Sell to open uncovered: a sell order to write an initial option position without an underlying security or option
Last updated July 2, 2020