The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “When can you sell a long straddle?” The basis for this question comes from a member who basically asked, “If I have a long straddle position that’s already on where they bought a call option and a put option at the same strike price, same expiration date, when can I sell out of that position, remove the position from my account, take profits or take losses or basically just exit the position altogether?” And the answer to this question is you can sell it back at anytime. You can sell a long straddle back to the market at any time up until the day that it stops trading which is basically right at the expiration date. Now, again, a lot of people get confused here because they’re trading both a European or American-style option contracts which only deal with the actual settlement of the option contract, but it has nothing to do with the fact that you can trade those contracts in