Categories
Rolling is one of the most common ways to adjust an option position. It’s possible to roll either a long or short option position, but here we'll focus on the short side...
Imagine you’re running a 30-day covered call on stock XYZ with a strike price of $90. That means you own 100 shares of XYZ stock, and you’ve sold one 90-strike call a month from expiration...
For example, let’s say you’ve sold a 30-day cash-secured put on stock XYZ with a strike price of$50. And let’s say you received $0.90 for the put when the stock was trading at $51...
Rolling a spread works much the same way as rolling an individual option. You will most likely be moving out in time and moving the strike prices either up or down.
Early exercise happens when the owner of a call or put invokes his or her contractual rights before expiration. As a result, an option seller will be assigned, shares of stock will change hands...
In Meet the Greeks we discussed how delta affects the value of individual options. Now let’s have alook at how you can take delta to the next level...
