Buy Call To Open (2026)

: Your total potential loss is limited to the premium paid for the contract(s).

: Reports will often show how the option's value decreases daily as it approaches expiration, which works against the BTO holder. Comparison: BTO vs. STO Buy to Open (BTO) Call Sell to Open (STO) Call Market Outlook Bullish (expect price to go up) Bearish/Neutral (expect price to stay flat or fall) Initial Cash Flow Debit (you pay premium) Credit (you receive premium) Max Risk Limited to premium paid Theoretically unlimited (unless covered) Closing Action Sell to Close (STC) Buy to Close (BTC) buy call to open

: You use a BTO order type on platforms like Investopedia or Fidelity to initiate the contract. : Your total potential loss is limited to

: To close the position before it expires, you must use a sell-to-close (STC) order. STO Buy to Open (BTO) Call Sell to