Rolling Option

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Dictionary Says

Definition of 'Rolling Option'

A contract that offers a buyer the right to purchase something at a future date, as well as the choice to extend that right, for a fee. Rolling options are most commonly used in real estate construction and development. They allow builders to reduce the risk of buying and holding large tracts of land before they know if anyone will be interested in purchasing whatever they construct.

Investopedia Says

Investopedia explains 'Rolling Option'

For example, a land developer may offer a homebuilding company a rolling option to buy lots. If the builder quickly sells the homes it builds on those initial lots, it may exercise the option and purchase additional lots. If the homes aren't selling as quickly as the builder hoped, but the market still looks favorable, the builder may pay a fee to roll the option forward another year, or whatever time period was agreed upon in the contract. This way, the builder maintains the option to buy more land, but doesn't make the financial commitment of actually purchasing the land.

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'Rolling Option'

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    http://www.investopedia.com/articles/optioninvestor/07/rolling_leaps.asp
    ... Rolling an option forward is inexpensive, because the investor is selling a
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  • Practical And Affordable Hedging Strategies

    http://www.investopedia.com/articles/optioninvestor/07/affordable-hedging.asp
    ... By rolling a put option forward and keeping the strike price close to, but still
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  • How To Manage Bull Put Option Spreads

    http://www.investopedia.com/articles/optioninvestor/05/051005.asp
    ... But first we reposition it with an adjustment known as 'rolling for credits'. ... (For
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  • Should You Roll Over Your 401(k)?

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    ... (To learn more, see The 4-1-1 On 401(k)s.) Other Options Those who are moving from
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  • 4 Reasons To Hold Onto An Option

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    ... Unless you want to own a position in the underlying stock, it is almost always wrong
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  • Find Profits By Hedging Iron Condors

    http://www.investopedia.com/articles/optioninvestor/09/hedging-iron-condors-put-calendars.asp
    ... At this point, option sellers listen to the Rolling Stones and wait because they
    know that "time is on [their] side.". Figure 1 - Trade Risk Profile. ...

  • Getting Acquainted With Options Trading

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    ... The Bottom Line Most option traders use options as part of a larger strategy based
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  • The Ins And Outs Of Selling Options

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    ... selling an option and what risks accompany selling options. Time Is on My Side The
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  • Trading Around Key Options Indicators

    http://www.investopedia.com/articles/optioninvestor/12/trading-around-key-option-indicators.asp
    ... is because in a high interest rate environment bond prices fall and the bond markets
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  • How To Sell Put Options To Benefit In Any Market

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    ... can fall well below $250 and past $220, meaning that you will take ownership of
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