Reply To: SPY Options – Buying & Rolling

[George Halongton]

Why use the strategy of rolling options?

“Many options strategies require active management and unlike stocks, options expire–you can’t hold on to them forever. When an option reaches expiration, it’ll either expire worthless (if it’s out-of-the-money) or result in an obligation to buy or sell shares of the underlying security (if it’s in-the-money). Rolling your options prior to expiration may help avoid these outcomes, among other reasons.” Sources from Robinhood