Closing Trade

There are three ways to close a short option position:

1.  If we issued a "Suggested Exit" price and the option is now trading at or below this price, we will buy back the option to close out our short position. The trade exit price is usually equal to the "Suggested Exit" price. In situations where the market opens significantly below the "Suggested Exit" price, the actual trade exit price may however be substantially lower.
2.  We may change a "Suggested Exit" price and issue an "at the market price" in its place. If we made a change to our "Suggested Exit" price during trading hours, we will close out the short position at the market close. If the "Suggested Exit" price was however altered after the market close, we will liquidate our short position at the market open on the following trading day.
3. If we stated a "Suggested Stop-Loss" price and our short options trade at or above this level, we will close out our short position and take a loss.

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