Rolling Options

Rolling an option is a strategy that involves closing an existing position and simultaneously opening a new one with a different strike price or expiration date. It is a common technique used to extend the duration of a trade, lock in profits, or adjust the delta of a position without exiting the market entirely.

By rolling, a trader keeps their market exposure while adapting the trade to current conditions. It is a flexible tool for managing open positions.

However, it involves additional transaction costs and requires careful analysis to ensure the new position still aligns with the trader's objectives. It is a core tactic in active options management.