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Rolling Up

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia 0.01 sec.
Roll Up
1. In venture capital and hedge funds, the purchase and merging of two or (often) more small firms in the same sector. This is done to hedge risk; given the choice between two firms in which to invest, one more risky than the other, a fund or venture capital firm may simply buy out both of them and force a merger, hoping to split the difference in risk and return. Roll ups become more common in times of economic downturn as part of a market consolidation process.

2. To liquidate one option in order to buy similar one with a better strike price. Most often, an investor does this in order to maintain a position when he/she is bullish on the price of the underlying.

rolling up
The liquidation of an option position by an investor at the same time that he or she takes an essentially identical position with a higher strike price.


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