DEFINITION of 'Options 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.
BREAKING DOWN 'Options Roll Up'
If the new contract involves a higher strike price and a later expiration date, the strategy is called a "rollup and forward." If the new contract is one with a lower strike price and later expiration date, it is called a "rolldown 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.

Roll Down
The replacement of an option with a new option that has a lower ... 
Roll Forward
To extend the expiration or maturity of an option or futures ... 
Roll Back
In options trading, exiting one position and entering a new one ... 
Strike Price
The price at which a specific derivative contract can be exercised. ... 
Vertical Spread
An options trading strategy with which a trader makes a simultaneous ... 
Long Jelly Roll
An option strategy that aims to profit from a time value spread ...

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What does it mean to roll a derivative contract?
Find out more about derivative securities, how to roll forward a derivative contract and what it means when a derivative ... Read Answer >> 
How do I change my strike price once the trade has been placed already?
Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >> 
How are call options priced?
Learn how aspects of an underlying security such as stock price and potential for fluctuations in that price, affect the ... Read Answer >> 
What happens when a security reaches its strike price?
Learn more about the moneyness of stock options and what happens when the underlying security's price reaches the option ... Read Answer >> 
How does the term 'in the money' describe the moneyness of an option?
Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >> 
How do I set a strike price for an option?
Learn about the strike price of an option and how to set a strike price for call and put options depending on risk tolerance ... Read Answer >>