Rolling an Options Trade Explained | Options Trading Concepts

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[johnjohn-kdfl]

This is one of those videos where you realize you know way less than you thought you did. At least I know what I'm doing this weekend. Thanks for the info.

[MusicGodsNFT]

Hello there and thanks for the video. If you are open for critique I have a suggestion. When teaching/ explaining a concept regarding options please consider the audience and the possible/ probable lack of understanding of short selling and especially naked puts. It is exponentially easier to grasp the concept of buying covered calls to people who would look for this type of information. In other words, if someone has the approval for selling naked puts (which is level 5 clearance) the concept of rolling should be basic information. This is my opinion but perhaps others will vary. Wishing you well. 👍🏼

[raulesteves]

I read a comment about the assumptions and benefits of rolling: rolling an option into the future allows for decreased max loss and increases the probability of profit (because time allows for a reversion to the profit side). The problem with rolling is that there has to be an assumption of a reversion to the OTM credit spreads. And when the price becomes too trending, then rolling becomes obsolete, and if that happens, your max loss increases. When do you know when to stop rolling?

[alondob]

Great explanation with excellent visuals!

[cashbull]

essentially the government does that to our money, always pushing the retirement benefits further into the future, thanks for the video!

[thetacc]

We wonder how the Days till expiration affect the rollover price theoretically. Like which one of the scenarios below would be cheaper:
To roll over a position with 40 DTE to 50 DTE (adding 10 days till expiration)
or
To roll over a position with only 1 DTE to 11 DTE (again adding 10 DTE)

[ManjitSandhu]

Great video. Thanks.. Was wondering if you have a video on how to sell covered calls on a long term portfolio of stocks where i do not want to have then called away (capital gain tax) but want to make a little extra money by selling covered calls. Yes, I could go low delta (like say 10) but even that means that some of the stocks would get called away.

[MrJking]

I have been doing risk and profit analysis on pure options trading in my IRA for the last month. The low risk trades also have low profit. It equates to hundreds of trades and a 6% percent annual return on investment. I could save myself time by putting it in a stable fund. The higher risk trades seem more like gambling. One bad trade will erase 10 previous trades. I am an experienced long term trend trader who wants to minimize loss and capture more profit as a trend oscillates to its end. That is where options seem to fit for me.

I guess in a margin account it could be 12% annual because I was using cash secured put selling on put condors. 12% is good. For an IRA I will stick to putting puts to get into a trend and selling covered calls to capture more. Its also easier to decide where I want to place my strike prices in line with the trend.

Scratch this for now. My analysis did not consider leveraging my odds using theta. I was only looking at expiration.

[stocktawk]

Do you have a video about rolling contracts that you have purchased? Instead of sold..

[scottallison]

I sell naked puts and when I have to roll the position I choose a lower strike price than my original trade. In your example you choose the same strike price when you roll into the future. Doesn’t it make more sense to lower the strike price as long as you’re still getting a net credit? Thanks Scott

[edmandell]

Great Video. Couldn't you roll up or down ? Also, does it make sense from time to time to roll the direction? for example: closing a put then rolling out a call.

[stiffsheet]

So does it mean when you decide to get assigned you’d have higher cost average or is it still $4330?

[saderick]

do you have a video teaching rolling for spreads?

[Pathos]

My question is, when would you want to roll an option? This assumes the option was correct and you're banking on it moving further into that direction, correct?

[Andrewbliss]

Question: What is the best ( right time) time period before Expiration to Roll -over short Put? And which new Expiration ( maximum time period) should be chosen?

[routerpete]

On TastyWorks platform, with the social aspects of it we're able to see what the members do, including you, Mike. I see a lot of rolls on there. Why? a) Why not put it OTM more and manage it less? b)Is it because you all try to hit ATM for max profits and as a result need to adjust more frequently?

Thanks...

[colinteoh]

Hello Tastytrade, For this particular case, how do you mitigate early assignment risk when rolling ITM puts.

[rogjerr]

When rolling, what effect does altering the duration have on the trade? e.g Rolling every week, then switch to rolling a month? Is this good/bad? Any optimal way to do rolls? Also, at what point should we stop the trade and accept a loss, I mean when should we give up (if needed) as we can't roll forever?

[theotherguy]

So If you follow the tasty trade mechanics would you still buy back a put at 50% profit? or how would handle a rolled put? because if you buy back at 50% you're still locking in a loss.

How do you handle this situation?

[kavinguo]

Thanks for the video. I'm new to Option trading, is there a way to roll a long call option?