Rollover

XxQuote399

Member
50 0
How to deal with expirations ? do you keep the options to the end nd add new months or roll over to next months ? how long before expiration do you roll ?
 

XxQuote399

Member
50 0
If you have to enter the (debit) position again after expiration,do you let expire and enter again or do the rollover ?
 

daveyc

Member
89 3
start buying back your shorts as soon as you are either happy with the results or a couple of weeks prior to expiration. you will risk too much if you hang on for every penny.
 

Martinghoul

Senior member
2,690 276
If you have to enter the (debit) position again after expiration,do you let expire and enter again or do the rollover ?
Honestly, I am not trying to be an ass here... It all depends on what you're trying to achieve.
 

XxQuote399

Member
50 0
I mean a long position,If you have to do your portifolio all over again when do you roll your 3 month options ? 1 month before expiration ? or open a new series and let that one expires ?
 

XxQuote399

Member
50 0
I mean,

In a 3 month option when do you guys usually rollover (cause of the theta) if you gonna do the same bet again,like do you roll 2 months before expiration and enter a new 3 month ? (a long option position like a long call or a bull call spread)

I have this question because of the theta bleed,when do you usually roll due to that ?

Thanks
 

Martinghoul

Senior member
2,690 276
Well, your theta depends on a variety of variables, doesn't it?

My point is that the act of rolling the position is a trade in and of itself. In every case, you need to do some analysis to determine what the best entry point for the "roll trade" is. There are no hard and fast rules for when the optimal time for the roll is.
 

XxQuote399

Member
50 0
do you generally roll how far from 1 month expiration ? the decay accelerates when theres a expiration of the previous series (I guess)

is there some literature about that ?

I totally understand your point,there are a lot of situations
 

Martinghoul

Senior member
2,690 276
I generally stay away entirely from very short-dated options, as, in my asset class, gamma hardly ever is worth the theta, so to speak. This may be different in your world. I don't know of any literature, but, if this is equity options you're trading, you should post your question on EliteTrader. There are two guys there, sle and atticus, who are experts and, I'm sure, can tell you if there are any rules of thumb that they like to follow.
 

mishdog

Newbie
9 0
I am in my first trade right now, on the vix futures. It expires on Tuesday, I got told I get a 40% concession on the spread if I rollover.. is there any downside to rolling over? I don't quite follow it all yet :) don't see why anything expires when the position/price of the vix changes every day anyway, regardless of which period you are in.
 

mishdog

Newbie
9 0
okay, seems I was a tad naive - didn't realise that when you roll over you get put into the next month's price of the vix, I thought you just roll over the same position you were at.

first ever trade = money down the drain :(
 
 
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