How to Execute the Short Option “Roll”


Jun

7

2016

How to Execute the Short Option “Roll”

Michael Gross, co-author of McGraw-Hill’s The Complete Guide to Option Selling, explains How to Execute The Short Option “Roll”
  1. Michael Hassan Says:
    June 7, 2016 at 11:37 pm

    Your comments are very helpful and educational.

    Thanks,
    M

    • Michael Gross Says:
      June 8, 2016 at 1:38 pm

      Michael,

      Thank you. I am glad you found it helpful.

      Regards,
      Michael Gross

  2. Owen L. Murray Says:
    June 7, 2016 at 8:25 pm

    Nice, clear presentation. But…

    Use the entire white board, not just the lower-right one-third.

    This will help your notes to be level rather than sloped down.
    Thanks,
    Owen.

    • Michael Gross Says:
      June 8, 2016 at 1:38 pm

      Owen,

      Thank you for that insight. I will keep that in mind for future videos!

      Michael

  3. bob ferra Says:
    June 7, 2016 at 8:19 pm

    doesn’t volatility generally go higher when the market is falling more so than when its rising?

    • Michael Gross Says:
      June 8, 2016 at 1:37 pm

      Hello Bob,

      Thank you for your question. Volatility does often increase faster when markets are falling. But this is often a function of markets selling off faster than they climb. (Remember the old axiom “markets take the stairs up but the elevator down?” There is no inherent rule that says volatility increases faster in downward price moves. The recent increase in commodities volatility is generally due to prices in several sectors moving higher, not lower.

      Thanks,
      Michael

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