Rolling options is when you change some details of the contracts you have bought that give you the right to buy or sell something at a certain price and time. You might want to do this because you think the price will go up or down, or because you want to keep your contracts working longer. When you roll them up, you are changing to a higher price. When you roll them down, you are changing to a lower price. Rolling can help you make more money and protect yourself from losing money. Read from source...
- The author does not provide a clear definition of rolling options or its benefits, but instead jumps to three ways to roll options without explaining why and when they are useful.
- The author uses vague terms like "usually" and "may want to", which do not convey any concrete guidance or logic for the reader.
- The author focuses on one example of Rumble Inc., but does not explain how it relates to the general topic of rolling options, nor how it demonstrates a successful strategy or outcome.
- The author implies that rolling up and down are mutually exclusive options, when in reality they can be combined or adjusted depending on the market conditions and the trader's goals.
- The author ends with a weak statement that rolling provides agility, without providing any evidence or examples of how it helps the trader adapt to changing circumstances or opportunities.
- Rolling up options can be a profitable strategy when the market is trending higher, but it also involves higher risk as you are extending the upside potential on the trade. - Rolling down options can help reduce the cost basis of your position by lowering the strike price, but it also limits your upside profit potential and exposes you to more downside risk if the market reverses direction. - Extending the expiration date of an option can give you more time to make a decision, but it also increases the time decay and reduces the value of your option as each day passes.
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