How to do a roll strategy for puts and calls - The Hindu Bus

How to do a roll strategy for puts and calls - The Hindu BusinessLine


How to do a roll strategy for puts and calls
Objective is to collect higher premium and reduce spread cost
Last week, we discussed bull call spreads. This week, in addition to the bear put spread, we discuss a roll strategy that you can apply for both calls and puts.
Spreads and rolls
A bear put spread is set-up when you expect the underlying to decline. This is a net debit spread as the put you buy will have a higher price than the put you short. This is because this strategy involves buying a higher strike put and shorting a lower strike put.

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