Recapturing Lost Premium with the Option Roll

  1. Nathan Denman Says:
    January 11, 2018 at 4:57 am

    Hi Michael,

    Wouldn’t it be more prudent to roll out into the next expiration month for a small credit when your short position is tested, but not increase the contract size/risk? Theta decreases, but gamma also decreases and your margin won’t increase if you don’t double the contract size and stay in the same month. So basically slow the trade down to give yourself time and space to be right without incurring additional risk?

    Thanks much for sharing the video and GO BOLTS! – Nate

    • Michael Gross Says:
      January 11, 2018 at 3:19 pm

      Nathan,

      Yes, you could. There are a number of rolling strategies one can employ depending on the situation. This video is to give beginners a general understanding of what a roll is and a basic strategy they can use right away. However, how you put it to work can often be up to your own creativity. But I like how you think!

      Regards,
      Michael

  2. At this time would rolling up to a higher strike still be a good idea for Crude Oil? Very informative video. Thanks!

    • Michael Gross Says:
      January 5, 2018 at 3:21 pm

      Jess,

      Probably yes. However, with the seasonal tendency now a supportive factor, we are more partial to neutral strategies like strangles in crude.

      Thanks
      Michael

  3. Hi Michael,

    I really enjoy your presentations and “teaching” information on all things of selling options.
    I wish you a very happy and profitable New Year.

    Brian J.

    P.S. You look an awful lot like my son.

  4. DR STEFANO Says:
    January 4, 2018 at 12:47 am

    THANK YOU FOR THE GREAT COMPLIMENTARY CONTENT.

    MOVE OVER TO YOUR RIGHT MORE AND USE THE WHOLE BOARD INSTEAD OF STANDING IN FRONT OF HALF OF IT

    • Michael Gross Says:
      January 4, 2018 at 4:08 pm

      Dr. Stefano,

      Thank you! I do appreciate that kind of feedback and will take that into account in future videos.

      Regards,
      Michael

  5. Sagastocks Says:
    January 3, 2018 at 9:30 pm

    Nice video, Michael. I’m writing from Canary Islands (Spain). We are working with a small account following your 3rd Edition Book and very instructive lessons.

    Regards,
    Sagastocks

  6. LARRY BECHT Says:
    January 3, 2018 at 7:52 pm

    Very informative and simply explained. Good Job Michael !

  7. The videos I see are EXCELLENT – and the best part is that they are free! Whiteboard, PowerPoint, smoke signals – I value your information and will watch it no matter the format! Please, keep up the excellent work.

  8. All good stuff. Michael has excellent communications skills and expertise. The only criticism I would constructively and respectfully offer would be that the use of the whiteboard is painfully tedious. I would suggest a power point format.

    • Michael Gross Says:
      February 22, 2017 at 3:10 pm

      Bob,

      Thanks for the feedback. There seems to be two emerging opinions from viewers – some like the whiteboard, some don’t. We may test Power Point at some point. In the meantime, it may be that I just need to improve my “whiteboard skills!”

      I do appreciate your thoughts.

      Regards,
      Michael

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