Option rolling

[proton91]

Hi all, new to the options game and trying to figure how the bidding and asking work if I want to roll a call option.

Say I bought a 20C for 5 Mar at $2.50 and I want to roll the option to the same strike price for a week later that is priced at $3.50 - how do I go about setting an order for this transaction?

Do I select the option to roll option, select these two legs and submit a buy order for $1.00? Ie the difference between the two contacts price?

Currently using IBKR.

 

[YouHeypiCanLiao]

To keep it simple for now .

Buy back current to close it at same price and date. You can see that it had been negated after you done it .

Then you sell call again

Hi all, new to the options game and trying to figure how the bidding and asking work if I want to roll a call option.

Say I bought a 20C for 5 Mar at $2.50 and I want to roll the option to the same strike price for a week later that is priced at $3.50 - how do I go about setting an order for this transaction?

Do I select the option to roll option, select these two legs and submit a buy order for $1.00? Ie the difference between the two contacts price?

Currently using IBKR.

 

[Shiny Things]

Hi all, new to the options game and trying to figure how the bidding and asking work if I want to roll a call option.

Say I bought a 20C for 5 Mar at $2.50 and I want to roll the option to the same strike price for a week later that is priced at $3.50 - how do I go about setting an order for this transaction?

Do I select the option to roll option, select these two legs and submit a buy order for $1.00? Ie the difference between the two contacts price?

Currently using IBKR.

Yep, that's exactly right - the Rollover Options tool is the "default" way to do this.

You can also just set up a spread order between the 5-Mar 20-strike call and the 12-Mar 20-strike call, and bid $1 for the spread; you'll end up in the same place.

 

[loackerc]

To keep it simple for now .

Buy back current to close it at same price and date. You can see that it had been negated after you done it .

Then you sell call again

I think he's doing long call. So sell, then buy.

 

[moolala]

Yep, that's exactly right - the Rollover Options tool is the "default" way to do this.

You can also just set up a spread order between the 5-Mar 20-strike call and the 12-Mar 20-strike call, and bid $1 for the spread; you'll end up in the same place.

whats the adv of using the rollover tool? seems complicated, unnecessary

i just close it and open the other like what u said, a spread order