Been hearing about roll position options lately but not sure what they actually do.
Saw some traders mention rolling positions when trades go against them. Sounds like it might help with losses but I don’t really understand how it works.
What are the main benefits of using this feature? Worth learning about for someone still figuring out the basics?
Rolling a position gives you more time to recover from a losing trade. Just keep in mind it costs more.
The roll feature can extend your trade when it’s going south. I used it last month with an Apple stock trade right before expiry.
This move can double your investment, giving you another chance at the same strike price. I managed to flip a losing trade into a win.
However, be careful. You risk twice as much, and I’ve had trades where rolling still resulted in losses.
Roll position doubles your trade amount and extends expiry time.
Key facts:
• Costs 100% of original investment
• Same strike price maintained
• Available near expiry only
Data shows 70% of rolled trades still lose. Use sparingly.