Rolling options is a fancy way of saying you are selling your current position and buying a new position further out.
Cavadrec01 on
Only if you do it wrong or out of position without wanting to keep the stock.
MrBlenderson on
Oof
Mia13j on
Learn to cut your losses.. not roll. Adding more capital to a losing trade is insane
Bloated_Plaid on
Are you rolling out for more credit?
Tmdngs on
Here we go again with the rolling
Ghorardim71 on
Depends on what price and date you’re rolling.
kaizenkaos on
I only roll when I’m up. 80% and up.
Ask-Bulky on
Let’s say your current value shows it $1.00 and you go pick a further out date that has a price of $1.25 and you roll into that position then you get paid .25 per share or $25.00 to roll it.
If your value says $1.00 ($100 for the 100 shares but you role it to a new date and the value is only .90 then you only get paid $90.00 and have to lose 10.00 and have to pay to roll the option.
Just find one that is higher than the current value showing and you should be good…. Not always can you find equal value or make money but I rarely lose money when rolling out.
Just gotta play the numbers and make it more in your favor like only trade deltas of .20 and that gives you better odds of not needing to roll much.
InnateCandor on
Not if you’re rolling it for a credit, even if it’s just a small amount, as long as the credit you gain covers the commission paid.
exploding_myths on
maybe/probably. you keep the credit on your existing trade when you roll it, but you’ll realize a loss on the existing trade if the cost to close it is greater than the credit you originally received. cost to close – credit received = realized loss.
when you roll it, you’re also closing the first trade and (hopefully) receiving a credit for the position you rolled into. if the next trade goes your way the credit helps offset the loss on the prior trade, etc.
11 Comments
Rolling options is a fancy way of saying you are selling your current position and buying a new position further out.
Only if you do it wrong or out of position without wanting to keep the stock.
Oof
Learn to cut your losses.. not roll. Adding more capital to a losing trade is insane
Are you rolling out for more credit?
Here we go again with the rolling
Depends on what price and date you’re rolling.
I only roll when I’m up. 80% and up.
Let’s say your current value shows it $1.00 and you go pick a further out date that has a price of $1.25 and you roll into that position then you get paid .25 per share or $25.00 to roll it.
If your value says $1.00 ($100 for the 100 shares but you role it to a new date and the value is only .90 then you only get paid $90.00 and have to lose 10.00 and have to pay to roll the option.
Just find one that is higher than the current value showing and you should be good…. Not always can you find equal value or make money but I rarely lose money when rolling out.
Just gotta play the numbers and make it more in your favor like only trade deltas of .20 and that gives you better odds of not needing to roll much.
Not if you’re rolling it for a credit, even if it’s just a small amount, as long as the credit you gain covers the commission paid.
maybe/probably. you keep the credit on your existing trade when you roll it, but you’ll realize a loss on the existing trade if the cost to close it is greater than the credit you originally received. cost to close – credit received = realized loss.
when you roll it, you’re also closing the first trade and (hopefully) receiving a credit for the position you rolled into. if the next trade goes your way the credit helps offset the loss on the prior trade, etc.