Rolling Positions

Rolling means closing an option and opening a similar one with a later date or different strike. Here is how and why traders roll, what it costs and when rolling is just avoiding a loss.

What rolling means

To roll, you close an existing option and open a new one on the same stock, usually with a later expiration, a different strike or both. It is done as one order, often called a spread order. Rolling can extend a trade, adjust it to a new price or collect more premium.

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