Rolling
Closing an existing option position and opening a similar one at a different strike, expiration, or both, in a single spread order. Rolling manages a position’s risk and timing without abandoning the underlying thesis.
Rolling is bookkeeping plus a new decision: the old trade is closed at its actual profit or loss, and a fresh position is opened at today’s prices. “Rolling for a credit” does not repair a loss — it adds new risk that pays a premium.
Used well, rolls extend winners and reposition around changed circumstances. Used badly, they turn small defined losses into large slow ones. The test before any roll: would I open the new position on its own merits today?
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