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  • Closing position with synthetic options

    October 8, 2009 by  
    Filed under Double Calendars, Iron Condors, Options

    Q: Thanks for the detailed video.
    One quick question regarding yesterday’s video. You showed how to close the postion with synthetic options. Now, When we close the sell postion (in this case SPY call sell) by buying the SPY call, do we need to sell that as well? SPY call bought needs to be sold to clear the postion just like regular call you buy , you sell to close the postion?

    I’m sorry for asking silly question but I’m newbee and in learning phase. Will the same closing works for other spreads like Iorn condor and Double calendar?
    Thanks again for your wonderful support.

    In future, if situation is suitalbe to buy spread like Iron condor and Double calendar, please do share.

    A: Yes it works the same.

    If you are ‘short’ an option then you must buy it back to close the position and if you are ‘long’ the option you must sell it to close the position.

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