Brand name Buy To Open special. If a new options investor wants to buy a call or put, that. If a trader wants to short an option, he/she would use a sell to open order.
This is the order entry that many people are used to and start out with when first investing with or trading options.
To write a put or a call, she must enter a "sell to open" order.
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When going long on either a call or put option you don't need any stock or funds to back up the position. The buy to close transaction order is used to close out an existing option trade. Sell to open - buy to close.
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