Rolling options positions is a strategy used in options trading that involves closing an existing option position and creating a new one with different terms. This might involve moving the strike price, changing the expiry date, or moving from one type of option to another (e.g., from a call option to a put option). Rolling options positions are often used to extend an investor’s holding period, to lock in potential profits, or to protect against potential losses. It provides flexibility to adjust with the changes in the market scenario.
Moneyness
Moneyness is a vital term in options trading that helps option traders understand the relationship between the price of an
