Roll Up
Definition of 'Roll Up'The move from one option position to another that has a higher exercise price. A roll up is a trading action whereby an investor or trader closes an open option position while simultaneously opening a new option position that has a higher strike price or a different expiration, or both. A roll up is typically performed if an investor is bullish on an underlying instrument, such as a stock, and he or she believes the price will rise. This is the opposite of a "roll down" in which an investor simultaneously closes one position and opens another with a lower strike price. |
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Investopedia explains 'Roll Up'If the new contract involves a higher strike price and a later expiration date, the strategy is called a "roll-up and forward." If the new contract is one with a lower strike price and later expiration date, it is called a "roll-down and forward." A roll up is one of several options strategies for rolling, which is entering a new position while concurrently closing an existing one. Options traders use rolling strategies to respond to changing market conditions and to secure profits, limit losses and manage risk. |
Directory (Option Strategy)
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Alligator Spread
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Butterfly Spread
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Collar
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Credit Spread
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Death Put
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Delta Spread
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Double One-Touch Option
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Fixed Dollar Value Collar
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FMAN
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Forex Hedge
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Forex Option & Currency Trading Options
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Form 6781: Gains And Losses From Section ...
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Front Fee
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Implied Volatility - IV
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Interest Rate Collar
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Iron Butterfly
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Iron Condor
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Leg
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Leg Out
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Long-Term Equity Anticipation Securities ...
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Modidor
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Negative Butterfly
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Neutral
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Option Premium
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Outright Option
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Overwrite
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Overwriting
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Positive Butterfly
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Protective Put
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Put
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Put Calendar
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Put Ratio Backspread
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Ratio Call Write
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Ratio Spread
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Risk Reversal
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Roll Down
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Roll Forward
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Roll Up
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Seagull Option
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Sell To Open
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Series 4
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Short Leg
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Straddle
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Strangle
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Swing Option
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Synthetic Dividend
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Variable Ratio Write
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VIX Option
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Writing An Option
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Zero Cost Collar
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Zomma
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