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Roll Forward

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Dictionary Says

Definition of 'Roll Forward'

When an investor replaces an old options position with a new one having a later expiration date (and same strike price).
Investopedia Says

Investopedia explains 'Roll Forward'

This is sometimes referred to as a roll over.

Related Definitions

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    Option

    A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to ...
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  • Roll Back

    When an investor replaces an old options position with new one having an earlier expiration date (and the same strike price).
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  • Roll Up

    1. The move from one option position to another with a higher exercise price. 2. In the context of venture capital, when a VC forces small companies to merge in order to reduce costs.
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    • Expiration Date

      The last day on which an options or futures contract is valid. When an investor buys an option, the contract gives them the right but not the obligation to buy or sell an asset at a ...
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    • Roll Yield

      The amount of return generated in a backwardated futures market that is achieved by rolling a short-term contract into a longer-term contract and profiting from the convergence toward a ...
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    • Roll Down

      The replacement of an option with a new option that has a lower strike price. The use of a roll down means that the investor does not have to exercise the option. Instead, the investor ...
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