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With the stock at $175, a novice trader buys 1 call option:

  • Option Price: $20

  • Strike Price: $200

  • Expiry: December 15, 2020

  • Cost: $4,000

He wants to SELL TO CLOSE the option on December 1st, 2020 end of day for whatever the market price.

I looked at this list of order types. What order type should the trader choose?

UPDATE

The following order type is from etrade Powertrade. Will this serve the purpose?

The Duration available in the form are:

  • Good For the Day
  • Good Until Cancelled
  • Good Until Date
  • On the Open
  • On the Close
  • Immediate or Cancel
  • Fill Or Kill

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Limit orders (buy, sell, buy stop, and sell stop) allow an investor to buy and sell securities at a certain price in the future.

Some brokers offer complex conditional orders that allow application of logical conditions (greater than, less than, equal to) to a combinations of variables such as price, time in force (day, GTC), volume, margin cushion, trade and percentage change, and the value of other securities.

I have never seen one that offers the ability to buy or sell on a predetermined date in the future.

| improve this answer | |
  • I updated the original post with a screenshot from etrade Powertrade order types. The duration selected is GTD (Good Till Date). – wonderful world Jun 20 at 19:51
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    All of those orders in your update are Time In Force orders. They specify that your order is good for right now, for the day, until a date in the future, etc. but none of them specify that the order be filled on such and such date. – Bob Baerker Jun 20 at 22:41
  • Does that mean if an order is created with first three options, the order will be executed immediately as soon as the market opens? – wonderful world Jun 20 at 23:04
  • All of those orders in your update are Time In Force orders. They specify that your order is good for right now, for the day, until a date in the future, etc. but none of them specify that the order be filled on such and such date. – Bob Baerker Jun 21 at 2:31

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