Free tool
Options roll calculator
Rolling means buying back the option you sold and selling a new one, usually further out in time. It can buy a losing trade more time, but it is not a free fix. Enter both sides of the roll to see what you really get.
Example numbers are filled in. Change any box and the results update. Educational only, not financial advice.
How the numbers work
- Net credit or debit: (new premium − buy-back cost) × 100 × contracts, minus fees. A credit means the roll paid you. A debit means you paid.
- Total premium on this trade: what you first collected, minus the buy-back, plus the new premium. This is what the whole position has paid you so far.
- New break-even (puts): new strike minus total premium per share. If you're assigned, this is your real cost.
- Sale price if called (covered calls): new strike plus total premium per share. Compare it with what your shares cost you.
- Earned per day added: the net credit spread over the extra days. It shows whether the extra time is worth it.
When rolling makes sense
Rolling works best when you still like the company and can roll for a credit. If you'd no longer want to own the stock, taking a small loss is often better than rolling again and again. Learn more in Step 1: How to sell a cash-secured put, and see the term in Part 5: Options terms to know.
Questions
What does it mean to roll an option?
You buy back the option you sold and sell a new one on the same stock, usually with a later expiration and sometimes a different strike. Most brokers let you do both in one order.
Should I roll for a credit or a debit?
A credit is usually better, because you still get paid for taking on more time. Paying a debit means you are spending money to wait, so the stock has to move your way for it to pay off.
Can rolling turn a losing trade into a winner?
Sometimes, if the stock recovers. But rolling does not erase the risk. It moves it to a later date. If the company has changed, closing the trade can be the better choice.