Averaging up in Options

[safvan]

Can we average up in options trading with the same strike price and expiration date?

Its just like we do it in stocks.

Is this possible?

I am new to options and want to test some long term strategies.

Thank you:clap:

 

[Rhody Trader]

When you say "average up" do you just mean buying more of an option when it moves in your direction?

If so, then certainly.

 

[Martinghoul]

No, you can only average down... Options can only be traded if you're losing money on them.

Sorry, just being facetious. Rhody got your answer, obviously.

 

[safvan]

Thanks guys

 

[safvan]

Also I wanted to ask about roll over.

If I want to move say 11July 30 and the stock is trading at $28 at the moment (out of the money) over to say 23 Sep 30, how would I do that? Do I pay more or the same?

 

[wackypete2]

There are several good books about options trading worth reading if you are just starting out trading them.
Here's one I liked: The Option Trader Handbook: Strategies and Trade Adjustments by George Jabbour & Philip H. Budwick

Peter

 

[Martinghoul]

Also I wanted to ask about roll over.

If I want to move say 11July 30 and the stock is trading at $28 at the moment (out of the money) over to say 23 Sep 30, how would I do that? Do I pay more or the same?

You pay more (assuming the fwds are the same)... All else being equal, the price of the option always (or nearly always) increases with time to expiry.

 

[safvan]

thx cheers