koolgal
2025-05-22
๐ŸŒŸ๐ŸŒŸ๐ŸŒŸOptions lose value as expiration date approaches due to time decay.  If the option is losing value too quickly before the underlying asset makes a move, rolling can extend the trade's duration and potentially lower the rate of time decay impacting your position.

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Options 101: How to Roll Positions and Avoid Big Losses?
In options trading, rolling is an essential tool for risk management and strategic adjustment. Simply put, rolling involves closing an existing options position and simultaneously opening a new oneโ€”typically to modify the expiration date, the strike price, or both. This tactic is often used as an active position management strategy to adapt to market changes or to control risk. Have you ever used rolling in your trading? What other options knowledge would you like to share with fellow investors?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • JediGingerNinja
    2025-05-22
    JediGingerNinja
    is there an optimum time to expiration  that you would execute rolling the position? taking into account the time decays increasing impact?
    • koolgal:ย 
      Best of luck ๐Ÿ€๐Ÿ€๐Ÿ€
    • koolgal:ย 
      Have a great weekend ๐Ÿ–๏ธ๐Ÿ–๏ธ๐Ÿ–๏ธ
    • koolgal:ย 
      It depends on  a mix of factors like remaining time value, the risk profile of a position, and your market outlook.
    • koolgal:ย 
      There is no one size fits all rule.
  • KienBoon
    2025-05-23
    KienBoon
    How does rolling works with respect to expiry of Option?
    • koolgal:ย 
      May you have a winning week ahead ๐ŸŒˆ๐ŸŒˆ๐ŸŒˆ๐Ÿ’ฐ๐Ÿ’ฐ๐Ÿ’ฐ
    • koolgalReplyKienBoon:ย 
      My pleasure ๐Ÿ˜๐Ÿ˜๐Ÿ˜
    • koolgalReplyKienBoon:ย 
      My pleasure ๐Ÿ˜๐Ÿ˜๐Ÿ˜
    • KienBoonReplykoolgal:ย 
      I see. Thank you for the info indeed.
    • koolgal:ย 
      Best of luck ๐Ÿ€๐Ÿ€๐Ÿ€
  • supratmanto
    2025-05-23
    supratmanto

    โœŠโœŠ

    • koolgal:ย 
      Best of luck ๐Ÿ€๐Ÿ€๐Ÿ€
    • koolgal:ย 
      Happy weekend ๐Ÿ–๏ธ๐Ÿ–๏ธ๐Ÿ–๏ธ
    • koolgal:ย 
      Thanks ๐Ÿ˜๐Ÿ˜๐Ÿ˜
  • zuma
    2025-05-23
    zuma
    thx
    • koolgal:ย 
      Best of luck ๐Ÿ€๐Ÿ€๐Ÿ€
    • koolgal:ย 
      Have a wonderful weekend ahead ๐Ÿ–๏ธ๐Ÿ–๏ธ๐Ÿ–๏ธ
    • koolgal:ย 
      Happy Trading ๐ŸŒˆ๐ŸŒˆ๐ŸŒˆ๐Ÿ’ฐ๐Ÿ’ฐ๐Ÿ’ฐ
    • koolgal:ย 
      Thanks for your support ๐Ÿฅฐ๐Ÿฅฐ๐Ÿฅฐ
    • koolgal:ย 
      My pleasure ๐Ÿ˜๐Ÿ˜๐Ÿ˜
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