Call option investment help?

Question

I want to go long on a stock and buy a call option so I can buy it at a future date. Which option do I select: Buy to open call option or buy to close call option. I thought it could be buy to open but I am not to sure. Anyone help explain which is which and why?

Answer 1

"Buy to open" means you are buying to open a new position. That is the choice you would make to go long.

"Buy to close" means you are buying to close an existing position. That is the choice you would make to cover an existing short position.

If you want to own a call option you can exercise later you need to use a "buy to open" transaction when you buy the option.

Answer 2

You buy to open

When you "open" a position you are creating a new position,

when you "close" you are reducing or eliminating a position/

Answer 3

Buy to Open for a future call that you want to own

good luck