For an example, a RKLB call with a strike of $90 expires 1/16/26, bought at $9.70 (down quite a bit). With rolling over, if it’s worth it, would I be paying extra due to extending its expiration?
Yeah you are paying for the time value unless there is a IV crush
gokinetic on
**Yes, you will pay extra**. You are selling your current losing ticket for cheap and buying a new, more expensive ticket just to add more time.
GentAndScholar87 on
Generally speaking, yes, you get cheaper cost per day by buying options with further out expires compared to rolling. The downside is you have less flexibility and more capital at risk versus shorter days to expiry options.
3 Comments
Yeah you are paying for the time value unless there is a IV crush
**Yes, you will pay extra**. You are selling your current losing ticket for cheap and buying a new, more expensive ticket just to add more time.
Generally speaking, yes, you get cheaper cost per day by buying options with further out expires compared to rolling. The downside is you have less flexibility and more capital at risk versus shorter days to expiry options.