# Rolling an Option

*Derivatives & Options — Finicade finance glossary*

Rolling closes an option position and reopens it at a later expiry or a different strike, usually to avoid assignment or buy a losing trade more time.

Rolling closes an option position and reopens it at a later expiry, a different strike, or both — usually to avoid assignment or to give a losing trade more time. Rolling for a credit is defensible; rolling for a debit is paying to postpone a loss, and it is how small option losses become large ones. The honest test is whether you'd open the new position fresh today at that price.

**Also known as:** roll, rolling out, rolling up

**Related terms:** [Expiration](https://finicade.com/glossary/expiration), [Assignment](https://finicade.com/glossary/assignment), [Theta](https://finicade.com/glossary/theta), [Covered Call](https://finicade.com/glossary/covered-call), [Vertical Spread](https://finicade.com/glossary/vertical-spread)

Source: https://finicade.com/glossary/rolling-an-option