I’ve been trading for a while now, but I’m still confused about ‘rolling’ options. Can someone break it down in simple terms?
I’ve heard it mentioned a lot, but I’m not sure how it works or when to use it. Any straightforward explanation would be helpful.
Rolling’s not complicated. You’re closing your current option and opening a new one with different terms. Traders use it to extend a trade’s life or adjust the strike price.
I mainly roll when I’m still confident in a position but need more time. It can save a trade, but it also adds cost and risk. Once rolled an AMD position out a month and turned a loss into a 15% gain.
Key is to have a clear plan. Don’t roll just to avoid taking a loss. Make sure the new position aligns with your analysis and risk tolerance. And never roll into a bigger position than you’re comfortable with.
Rolling saved my AAPL trade last month. Moved expiry out 2 weeks, made 12% profit.
It’s closing one option and opening another. Gives more time but costs extra.
Rolling options:
• Close current position
• Open new one with different expiry/strike
• Extends trade duration
• Can increase risk exposure
• Useful if conviction remains strong
Analyze carefully before rolling.
Rolling options can be tricky. It’s like swapping your current trade for a new one with different terms.
Traders use it to buy more time if a position isn’t working out yet. But watch out - it can increase your risk if you’re not careful.
Learned that the hard way on a few trades. Now I only roll if I’m really confident in the stock’s direction.
Rolling options bit me hard when I first tried it. Lost 40% on a Tesla trade.
Basically, it’s moving your position to a new expiration or strike price. You close the current option and open a new one.
I use it to extend time on a trade that’s not working yet, but I still believe in. Gotta be careful though - it can dig the hole deeper.