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Derivatives




Roll Back


An options strategy that involves the replacement of a position by closing out one option contract with another that has an earlier expiration date and an identical strike price. If an investor expects the shares of XYZ to take off, and therefore would immediately roll back his call options by offsetting one long April 100 call and buying one March 100 calls or more.

It is also called a rolling backward.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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