Roll Back

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Dictionary Says

Definition of 'Roll Back'

In options trading, exiting one position and entering a new one with the same strike price but a closer expiration date. In a roll back, also called a "roll backward," both the old and new positions involve the same underlying security. If a trader held an October 50 call for TEVA and replaced it with a September 50 call for TEVA, he would be executing a roll back.
Investopedia Says

Investopedia explains 'Roll Back'

A roll back is one of many options trading strategies for rolling, or entering a new trade concurrent with closing an existing one in response to changing market conditions. The trader who replaced his October 50 call with a September 50 call might do a roll back if he thinks the former is no longer worth owning and the latter is a better bet. Closely related strategies include rolling down, rolling forward and rolling up. Rolling strategies help options traders to lock in profits, limit losses and reduce risk.

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