Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.
 

Introducing episode 8 -the art of rolling options

Welcome to "The art of rolling options," the eighth installment of 'Saxo Options Talk.' This episode has Koen Hoorelbeke and Peter Siks explaining the concept of rolling single legs in options trading, a strategy that can significantly affect portfolio management and trade outcomes.

Exploring the mechanics of rolling

Rolling options is a strategy that involves the transition of an option position to a different strike or expiry, all within a single order ticket. This episode elucidates the reasons behind rolling, whether for offensive adjustments or defensive countermeasures against market movements.

Key learning points

  • Why and how to roll: Understand the strategic considerations behind rolling positions, including managing expiration dates and adjusting strikes for optimal trade positioning.
  • Offensive vs. defensive rolling: Learn the difference between rolling for potential profit maximization and rolling to mitigate losses or protect gains.

Strategies for different scenarios:

  • Covered and naked calls: Examine the specific scenarios for rolling covered calls versus naked calls, underscoring the importance of caution with undefined risk positions.
  • Rolling short puts: Discuss rolling strategies for short puts and whether they serve as offensive or defensive maneuvers.

Advanced considerations:

  • Decision points: Delve into the critical decision-making process that leads a trader to roll or close a position, including the emotional aspects and financial implications.
  • Rolling as risk management: Consider rolling as an alternative to stop-loss orders and how it can be used in various market conditions.

Who should listen?

"Episode 8 - the art of rolling options" is designed for traders of all levels who wish to deepen their understanding of this essential options strategy and its applications across different market scenarios.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to [email protected]. Selected questions will be addressed in future episodes, providing customized advice and insights.

Conclusion:

In "the art of rolling options," Episode 8 of 'Saxo Options Talk,' Koen and Peter provide a masterclass on this crucial tactical option strategy. By understanding when and how to roll options effectively, you will be better positioned to adapt to the markets and manage your trades proactively. Join us as we continue our journey through the intricate world of options trading.

For continuous insights and updates on market/options strategies, interact with me/follow my social media account on Threads.

Previous podcast episodes:

  • 14 Feb 2024: Options Talk - Episode 07 - Put Spreads
  • 7 Feb 2024: Options Talk - Episode 06 - Delta
  • 31 Jan 2024: Options Talk - Episode 05 - Short Call Spreads
  • 24 Jan 2024: Options Talk - Episode 04 - Long Call Spreads
  • 17 Jan 2024: Options Talk - Episode 03 - Long Calls
  • 10 Jan 2024: Options Talk - Introducing -Options Talk by Koen and Peter- -Your Weekly Podcast on Options Trading

Previous "Volatility reports": 

  • Volatility report - week 8 - 19 feb 24 -- 23 feb 24
  • Volatility report - week 7 - 12 feb 24 -- 16 feb 24
  • Volatility report - week 6 - 5 feb 24 -- 9 feb 24
  • Volatility report - week 5 - 29 jan 24 -- 2 feb 24
  • Volatility report - week 4 - 22 jan 24 -- 26 jan 24
  • Volatility report - week 3 - 15 jan 24 -- 19 jan 24

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Previous "What are your options" articles: 

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  • 18 Jan 2024: What are your FX options - EURUSD elevated volatility
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  • 21 Nov 2023: What are your options - Nvidia earnings
  • 08 Nov 2023: What are your options - Disney earnings
  • 26 Oct 2023: What are your options - Nasdaq Selling Premium
  • 29 Aug 2023: What are your options - Salesforce earnings
  • 25 Aug 2023: What are your options - the Qs - Nasdaq etf
  • 23 Aug 2023: What are your options - Nvidia - earnings - market reactions
  • 21 Aug 2023: What are your options - swing trading semi-conductors - stocks vs options
  • 18 Aug 2023: What are your options - using TLT as an inverse proxy for the 10 year yield

Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.