Closing options means the option tokens are sold back to the pool for underlying tokens.
First, visit the market page of the app in the market of the option you'd like to close. To the right of the options table is the "active positions" card, which will list the option tokens held in the connected wallet.
This wallet has both long Put options and short Put options. This means both these options can be closed.
To close an active position, simply click on it.
Notice when an active position is selected, the corresponding option "+" icon in the table changes to a check-mark. The order title is "Close Short Position" when the "Buy" button is selected because underlying tokens are bought for your short option tokens.
This order is normally for purchasing long option tokens, but it will switch if an active short option position exists.
Swapping short option tokens to underlying tokens is closing the option position.
2. Clicking on the max button will auto-fill the input with the short option token balance.
3. Confirming Trade will close the short position out completely, by swapping the short option tokens to underlying tokens.
For long option tokens, closing that position is as simple as swapping them back to underlying tokens, selling them.
Select the "Sell" button. The Sell order is in the context of the long option tokens.
Select the max button, which will pre-fill the input with the max amount of long option tokens that can be sold to close.
Sell them for the execution price, and confirm the trade in the connected wallet.