How do I roll an option position?

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My option position is going against me. What does it mean to roll and how do I do it?

#options-and-futures

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Wolf Alpha

Trader · 15 days ago

Rolling = closing the current position and opening a new one at a different strike or expiry. For a losing short option, roll down (for calls) or up (for puts) and out in time to collect more premium.

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Wolf Alpha

Trader · 15 days ago

Rolling is a defensive tactic but it can turn a losing trade into a much larger loser if the trend is strongly against you. Know when to roll vs when to take the loss and exit.

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How do I roll an option position?

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