rolling forward
(redirected from Roll Forwards)Rolling Forward
The act or practice of selling an option and buying another of the same type and with the same terms, but with a longer period until the expiration date. For example, one may sell a call with a strike price of $25 expiring in June and buy another call with a strike price of $25 that expires in September.
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rolling forward
The liquidation of one option position by an investor at the same time that he or she takes an essentially identical position with a more distant maturity. An example would be repurchasing an option with a May expiration and selling an option on the same asset with an identical strike price but with a November expiration date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.