To Open Example — Buy

Imagine you find a house listed for . You believe the neighborhood is about to boom and the house will be worth $1,200,000 next month.

Instead of buying the house right now, you pay the owner a (the premium ) for a contract that gives you the right to buy that house for $1,050,000 (the strike price ) anytime in the next 30 days. buy to open example

: No one wants to move there, and the house value stays at $1,000,000 . You choose not to buy the house for $1,050,000. Your contract expires, and you lose only the $5,000 you paid to open the deal. Common Examples in Trading What is Buy to Open in Trading? Everything You Need to Know Imagine you find a house listed for