Have option in Coinbase which expires mid July, bought at too high volatility so is currently down. I think it'll come back but need longer – is it better to roll it when volatility is low, or higher? I assume low as though I'll get less for it, what I buy will be that much cheaper too….. and as I'll probably have to add funds to get a similar option, the cheaper it is the better?
Posted by Xcentric7881
1 Comment
I sell puts, and have ‘rolled’ but that’s because I want to avoid assignment. If you are selling calls the same applies if you don’t want the shares called away. I don’t even think the concept of ‘rolling’ even applies when you are buying options.
In your case it sounds like rolling is just another way of saying selling at a loss and starting a new trade; the concept has no other benefit other than brain candy to make you feel better about the financial bu-bu of losing money. Forget about the ‘rolling’ concept for a second; right now, do you think buying makes sense as a stand-alone transaction?