Under what put circumstance would you sell to close (sell) an option position?

Answer 1

The only reason to close any position is that you believe the potential reward of having the position no longer justifies the risk of keeping it.

That is true if you are selling for a profit or a loss.

If the put option was unhedged (not part of a spread) I would usually want to sell it at least two week before expiration unless there was an event scheduled before expiration that I thought could have a major impact on the price of the stock.

Answer 2

in case you obtain to open a placed position and the underlying's fee moved on your want (down contained concerning a placed), you would opt for to promote to close earlier to expiration to capitalize on the income and stay away from having to provide the extremely underlying. it really is undemanding selection belongings you need to carry close earlier paying for and promoting, otherwise your wallet receives picked sparkling in that market.