Option Rolling Strategies: Boosting Trading Performance
How’s it going options traders!? So, you’ve found yourself in a bit of a struggle with a losing trade as expiration coming closer . Don’t you worry we’ve got a strategy up our sleeves that might just save the day; rolling positions!
Just like using f5 on your browser, rolling an option is like hitting the refresh button on your trade . It involves closing your current option position and opening a new one in the same underlying security . You can roll up-down-or-out, depending on your needs .
In these situations the main goal of rolling options is to extend the duration of your trade and give it more time to turn profitable . Imagine you’re running out of time on your current option but you still believe in the underlying security . Rolling the option out to a later expiration date allows you to collect additional premium and move the break-even point without allocating more capital or increasing risk . It’s like giving your trade a second chance at success!
Just like using f5 on your browser, rolling an option is like hitting the refresh button on your trade . It involves closing your current option position and opening a new one in the same underlying security . You can roll up-down-or-out, depending on your needs .
In these situations the main goal of rolling options is to extend the duration of your trade and give it more time to turn profitable . Imagine you’re running out of time on your current option but you still believe in the underlying security . Rolling the option out to a later expiration date allows you to collect additional premium and move the break-even point without allocating more capital or increasing risk . It’s like giving your trade a second chance at success!
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