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Derivatives




Roll-Out


An option-related strategy that is based on the replacement of a position by closing out one option with a near-month expiration and opening another option at the same strike price but with a far-month expiration.

For example, an investor may offset one long March 100 call and buy one or more April 100 calls.

It is also known as a roll forward.



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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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