In options trading, Rolling is an important risk management and strategy adjustment tool. Simply put, moving positions isClose the current option position while opening a new option position to adjust the expiration date, strike price, or both of the position。1. What is option position transfer?Option position movement means that when the original option position has not yet expired, the trader chooses to close the current position, and at the same time opens a new position in the same direction but with a different expiration date or strike price.For example:Exchange a contract that is about to expire to the next one;Or adjust the call option currently held with an exercise price of $100 to $105;Or change the time and price at the same time.This operation is usually done as aActively mana
Options 101: How to Roll Positions and Avoid Big Losses?
In options trading, rolling is an essential tool for risk management and strategic adjustment. Simply put, rolling involves closing an existing options position and simultaneously opening a new one—typically to modify the expiration date, the strike price, or both. This tactic is often used as an active position management strategy to adapt to market changes or to control risk. Have you ever used rolling in your trading? What other options knowledge would you like to share with fellow investors?
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