rolling forward

Rolling Forward

The act or practice of selling an option and buying another of the same type and with the same terms, but with a longer period until the expiration date. For example, one may sell a call with a strike price of $25 expiring in June and buy another call with a strike price of $25 that expires in September.

rolling forward

The liquidation of one option position by an investor at the same time that he or she takes an essentially identical position with a more distant maturity. An example would be repurchasing an option with a May expiration and selling an option on the same asset with an identical strike price but with a November expiration date.