Option Roll
Definition
Closing an existing option position and simultaneously opening a new one with a different strike price, expiration date, or both. Rolling is used to extend a trade, improve the position, or collect additional premium.
Example
Rolling a short call to a higher strike and later expiration collects additional premium while extending the income window.
Related Terms
Frequently Asked Question
What is an Option Roll?
An Option Roll closes an existing option and opens a new position with a different strike or expiration. Traders roll to extend profitable trades, avoid assignment, or improve the risk/reward profile.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.