Options Strategies
An investor who is long a call option can close the position by executing a:
An investor who bought (is long) a call option closes the position by selling the same option, which is a closing sale. Opening transactions establish new positions, while closing transactions eliminate existing ones. Lo
Complete Analysis & Legal Rationale
An investor who bought (is long) a call option closes the position by selling the same option, which is a closing sale. Opening transactions establish new positions, while closing transactions eliminate existing ones. Long positions are closed with sales; short positions are closed with purchases.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.