Rolling an option means that you sell the contract(s) that is expiring, and buy a contract in the same underlying with an updated expiry and strike price. Use the Roll Option tool to roll an expiring option.
You can access the Roll tool two ways:
- When you log into the app, you will see a message on the home page if you have expiring options. Tap View Options to get to a list of Your Options.
- Tap Trade in the bottom right corner of the app. Tap Option ITM or Options along the bottom to get to a list of Your Options.
Please Note: From the Your Options page, each options contract shows the time to expiration.
To roll an option:
- Tap the contract you want to roll.
- Tap Roll It Over to open the tool.
- Use the dates along the top to choose a new expiry. The current expiration date is the highlighted first date in the row.
- Tap a strike price at the selected expiry. NOTE: The current price of the underlying is shown in black in the Strike Price list.
- See the spread that includes the current expiring option you are selling, and the new contract you are buying in the roll transaction.
- When ready, tap Create Order to roll your expiring option over.
Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options” that you can find on the OCC website.