Closing an option position vs selling an option

[fatgulfer]

Hi everyone,

I'm new to options and had a quick question that I could not find anywhere online (perhaps I am not typing the correct search terms).

Let's say I buy a call option. Before the option expires, I want to close my position by selling the option to make a profit off the higher premium price. Is this action of "selling the option" the same as selling an option and being obligated to pay the new buyer the strike price if he/she decides to exercise the option? Or does this mean I am exiting the contract and have nothing to do with it after I sell it?

Thank you all in advance.

 

[apau]

Yes, selling the option will simply zero off your position. You will have no obligation.

 

[options-george]

Same question is discussed on this thread.

http://www.trade2win.com/boards/futures-options/213134-long-index-put-risk.html