roll

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Roll

1. To buy or sell an option and then later buy or sell the same option with a different strike price because one believes the price trend will continue. For example, suppose one buys a call option giving one the right but not the obligation to buy a stock at $10. One does this if one believes the underlying price will be above $10 when the option expires. However, if it appears near expiration that the option is well above $10 and likely will continue to, say, $20, one may buy another call option with a longer expiration and a strike price of $14 in order to capture higher gains. Rolling options may provide an investor with time to take full advantage of a prolonged price trend. It may be done with both call options and put options.

2. See: Roll over.

roll

See roll over.
References in periodicals archive ?
amp;bull; Euro stalls ahead of 2009 high; rolling back over • Dollar/Yen remains under pressure; eyes 92.
The November 20, 2003, Speech from the Throne confirmed previous announcements from the Ontario government of its intent to introduce legislation rolling back the general corporate tax rate reductions legislated by the previous government.
In a short piece on June 23, The Washington Post noted the release of the Treasury Department report, calling it "a highly selective analysis of the cost to families of rolling back scheduled tax cuts" and quoting a Brookings Institution economist who poked holes in the figures.
Gray Davis and some legislators about rolling back the car tax increase and replacing that approximately $4 billion in revenue with higher liquor and tobacco taxes and higher income taxes on wealthier Californians.
A characteristic feature is a rolling back wave in which the initial stream of metal running along the bottom of the runner is reflected back from the far end of the runner, rolling back over the top of the incoming metal.
Imagine a marble in a bowl, rolling back and forth," says Monroe.
In the event of a server disaster caused by a virus or hacker attack, a Windows[R] crash, a faulty software installation, or a problem caused by human error, the user needs only to reboot the server and press the space bar on the keyboard to activate RestoreIT, rolling back the system to the most recent backup point.
1 LEE BOWYER celebrated rolling back the years after grabbing an 89th-minute equaliser for Birmingham against Premier leaders Manchester United.
RATHER than sending a strong positive message to the market, the Central Statistical Organisation ( CSO)- estimated GDP rise data for this fiscal dampened the market's spirits and raised fears that the government may start rolling back its mega stimulus package.
Because homeowners got fed up with being gouged on property taxes 25 years ago, voters defied the power brokers, pundits and politicians and approved Proposition 13, rolling back tax rates and tightly limiting increases.
This led to American and United rolling back their $20 fare hike early today.