Ask the Institute

DATE: April 21, 2014

Can you explain what is meant by the term rolling? For example, rolling a covered call.

The term rolling describes the action of closing an existing option position and opening a new option position. The new position is similar to the position being closed, but the new position has either a different strike price or a different expiration date. To learn more about the term rolling, and specifically, rolling a covered call, view this segment of "Ask the Institute."