Selling Options
💡 Welcome to a step-by-step guide for selling options back to the pool on Premia Blue!
Selling Options
Premia Blue allows users to sell their options back to the pool.
Since European-style options can't be exercised before they expire, traders might find selling their options back to the pool to be especially useful. Selling an option back to the pool has the potential to capture extra Theta (time decay: the premium paid for time left until expiration) and end up at a profit.
Let's go over the process of selling an option back to the pool step by step!
Once you've bought an option, an indicator has appeared next to the Positions tab on the sidebar. The Positions tab shows all your positions and how they’re performing.
This is also where I can close my options. If you don’t close your options before expiration, don’t worry, as you can settle them afterwards.
After clicking on the Close button, I can see a detailed view of my PNL. Unfortunately, I’m currently at a loss of -46%.
You have the choice to closing the full amount of the option after expiration. Closing early is sometimes a good way to profit from extra Theta, or time decay. Prior to expiration, closing options is done via the Trade page.
I can now choose to close my position by clicking "Sell Back to Pool".