Rolling is just selling one thing and immediately buying another but some brokers let you do it as a single function – Phil
What is rolling, what does Phil mean when he talks about “rolling a caller out and up”? Defined, this is the simple practice of buying out a short option you sold, and then selling a different option, and is a built-in feature of many trading platforms. However, the practical reality is much more complex and interesting, because volatility and the price of the underlying, as well as some inefficiencies in options pricing, can lead to opportunities to move your position into a situation that is better for you. Often, you can execute a roll for a credit, getting your new caller to pay off your old caller.
Rolling itself is an easy procedure to execute. Learning to identify when to roll, and what position to roll into, can make a world of difference in your performance in up, down, and sideways markets.
