Glossary term
Rolling (Options)
Closing one option position and simultaneously opening another at a different strike or expiry; the core defensive maneuver for short premium.
Rolling is the act of closing an existing option position and simultaneously opening another at a different strike, expiry, or both. Premium sellers roll a threatened short option out in time (and sometimes out in strike) to collect additional credit and delay assignment. Done for a net credit, rolling buys time without realizing a loss, but it can also defer rather than resolve a losing position. See Assignment & Rolling 101.