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 ?
THE first Fairtrade Dairy Milk bars were rolling off the Cadbury production lines in Birmingham today.
Volvo's parent, Ford, took a lot of flack for moving Transit production to Turkey, but that hasn't stopped the automaker from investing more than 715 million euro in its Genk plant for production of the Ford Galaxy and S-Max multipurpose vehicles, as well as the upcoming '08 Ford Mondeo, which begins rolling off the line on February 19.
The Toreadors finally found their momentum when it counted, rolling off two straight points to take the game and the match, 19-17

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