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 ?
We are not going to rest, until the management rolls back our fee hike.
MR J Morris of West Pembroke writes to ask why his disabled neighbour's new Vauxhall Corsa automatic rolls back on hills.
Schwarzenegger wants a two-tiered system for new hires that rolls back pension benefits to pre-1999 levels and is calling for state employees to contribute 6 percent of their gross pay into the state retirement fund rather than the current 5 percent.