koolgal
05-22
🌟🌟🌟Options 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.

@TigerStars @Tiger_comments @CaptainTiger @Tiger_SG @TigerClub

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 oneβ€”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
    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:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Have a great weekend πŸ–οΈπŸ–οΈπŸ–οΈ
    • koolgal:Β 
      It depends on  a mix of factors like remaining time value, the risk profile of a position, and your market outlook.
    • koolgal:Β 
      There is no one size fits all rule.
  • KienBoon
    05-23
    KienBoon
    How does rolling works with respect to expiry of Option?
    • koolgal:Β 
      May you have a winning week ahead πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgalReplyKienBoon:Β 
      My pleasure 😍😍😍
    • koolgalReplyKienBoon:Β 
      My pleasure 😍😍😍
    • KienBoonReplykoolgal:Β 
      I see. Thank you for the info indeed.
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
  • supratmanto
    05-23
    supratmanto

    ✊✊

    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Happy weekend πŸ–οΈπŸ–οΈπŸ–οΈ
    • koolgal:Β 
      Thanks 😍😍😍
  • zuma
    05-23
    zuma
    thx
    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
    • koolgal:Β 
      Have a wonderful weekend ahead πŸ–οΈπŸ–οΈπŸ–οΈ
    • koolgal:Β 
      Happy Trading πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
    • koolgal:Β 
      Thanks for your support πŸ₯°πŸ₯°πŸ₯°
    • koolgal:Β 
      My pleasure 😍😍😍
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