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What is the meaning of 'roll' in the context of cryptocurrency options?

avatarStrickland StormDec 18, 2021 · 3 years ago3 answers

In the context of cryptocurrency options, what does the term 'roll' refer to?

What is the meaning of 'roll' in the context of cryptocurrency options?

3 answers

  • avatarDec 18, 2021 · 3 years ago
    In the context of cryptocurrency options, 'roll' refers to the action of extending the expiration date of an options contract. This allows the holder of the contract to maintain their position for a longer period of time, giving them more flexibility and potentially increasing their chances of profit. Rolling can be done by either closing the current contract and opening a new one with a later expiration date, or by using a specific 'roll' feature offered by some exchanges. It is important to note that rolling a contract may involve additional fees or adjustments to the strike price, so it's essential for traders to carefully consider the implications before deciding to roll their options.
  • avatarDec 18, 2021 · 3 years ago
    When it comes to cryptocurrency options, 'roll' is all about extending the lifespan of your options contract. It's like hitting the snooze button on your alarm clock - you're buying yourself more time. By rolling your options, you can keep your position open for a longer period, giving yourself the opportunity to ride out market fluctuations and potentially make a profit. Just be aware that rolling may come with some costs, so make sure to factor that into your decision-making process. Happy rolling!
  • avatarDec 18, 2021 · 3 years ago
    Rolling in the context of cryptocurrency options is the act of extending the expiration date of an options contract. This can be useful for traders who want to maintain their position in the market without having to close their current contract and open a new one. By rolling, traders can effectively 'kick the can down the road' and give themselves more time to see how the market develops. However, it's important to note that rolling may come with additional fees or adjustments to the strike price, so it's crucial to carefully evaluate the potential costs and benefits before deciding to roll your options.