Action

Each strategy can be bought or sold, and this control specifies the operation.

For example, consider a straddle at strike X. Bought straddle is a bought call, and bought put both at strike X. Sold straddle is the opposite operation, then both legs are sold.

A more complicated example would be a vertical call spread. Bought vertical spread is bought call at strike X and sold call at strike X+width. Sold vertical call spread is a sold call at strike X and bought call at strike X+width.