Rolling Options

Updated: August 4, 20263 min read

1. Overview

With OptionsApp, you can automate the rolling of options. Technically, rolling is performed via the Re-Entry function.

An existing Trade is first closed by a defined trigger. OptionsApp then automatically opens a new Trade. For the new opening, you can use either the same Trade Template or a different Trade Template.

Rolling can be triggered, for example, after the following closures:

The exact configuration of the Re-Entry function is described in the article "Re-Entry".

2. Rolling with the same Trade Template

If you want to open the same strategy again after the closure, select "Current Template" in the Re-Entry configuration.

OptionsApp uses the search criteria stored in the Trade Template again when reopening. Typically, different Strikes will be opened. The suitable Contracts are searched for again based on the current market situation.

For example, if a Short Put is configured with a Delta of 20, OptionsApp searches for a Short Put with approximately this Delta again at Re-Entry. If the market has moved downward since the original opening, the newly selected Strike will typically also be lower.

In this way, a position can be automatically rolled down.

Similarly, the new Strike can be higher in the event of an upward market movement. The actual selection always depends on the search criteria defined in the Trade Template and the Contracts available at the time of Re-Entry.

3. Rolling into a different Trade Template

Alternatively, you can select a different Trade Template for the Re-Entry.

This allows you to open a different strategy or modified configuration after closing a position. For example, after a Bull Put Spread is stopped, you can start a different Put Spread Template or a Bear Call Spread.

All previously created Trade Templates are available for selection within the Re-Entry configuration.

This variant is particularly useful when rolling:

different search criteria should be used,
the expiration should be changed,
a different spread width is needed,
the number or structure of Legs should be adjusted,
you want to switch to a different strategy.

4. Example: Rolling a Put Spread after Stop Loss

For example, a Put Spread consists of a Short Put with Delta 20 and a further out-of-the-money Long Put.

The Trade is opened and subsequently closed due to a market movement by the configured Stop Loss. In the Re-Entry function, the Stop Loss is set as the trigger.

After the closure, OptionsApp initiates the Re-Entry.

Rolling with the current Template

If "Current Template" is selected, OptionsApp uses the original Put Spread Template again.

The Short Put is searched for again based on the stored Delta criterion. If the market has fallen further in the meantime, a lower Strike will normally be selected. The Long Put is determined according to the configuration defined in the Template.

In this way, the Put Spread is automatically rolled to a new Strike level.

Rolling with a different Template

Instead of "Current Template", you can select a separate Trade Template.

This Template can, for example:

have a different expiration,
have a lower Delta,
have a wider spread width,
have a different Contract quantity,
or have a completely different options strategy.

After the Stop Loss, the original Trade is not repeated, but instead the new position stored in the selected Template is opened.

5. Advanced Settings

For multi-leg strategies, you can specify whether a partial closure should trigger a new Trade.

You can also set that no Re-Entry occurs shortly after market open or shortly after market close.

Additionally, you can set a limit on the number of rolling operations.

You can find all these explanations in the article on the Re-Entry function.

6. Important Notes

Rolling via the Re-Entry function always includes reopening a Trade. An existing option is not technically moved within the same Order. Instead, the previous position is closed and a new position is then opened based on the selected Trade Template.

The actual selected Strikes depend on the market prices, option data, and search criteria in effect at the time of Re-Entry.

Before activation, you should check:

which closure should trigger the rolling operation,
which Trade Template is used for the new opening,
how frequently a Re-Entry is allowed,
whether partial closures are taken into account,
and within which trading hours new positions may be opened.

Further information on all settings and triggers can be found in the documentation article "Re-Entry".