How can I sell an option to market?

Question

In my 1st venture to options trading, I got my hands on 2 AUG 08 Visa options @ 72.50.

I'd like to sell this option back onto the market.

The option is in the money, but I don't have the buying power to exercise.

On my etrade account, I only have the option of

sell to close

Buy to close

Buy to open

Sell to open.

I know what all of these mean, but i'd just like to sell the option itself to someone else.

How do I do that?

Answer 1

If you own the options, therefore you sell to "close".

You trade to "open" when you are establishing a new positons, or adding to a current position

You trade to "close" when you want to reduce or liquidate your position that you have.

Before you trade options it would be in your best interest to know what you're doing, why you're doing it and how to do it.

Try these websites

http://www.options-trading-advice.info/

http://www.optionseducation.org/