roll down and forward

roll down and forward definition - finance
To move from one option position into another one that has a later expiration date with a new, lower strike price. If the strike price increases, it is called a roll forward. Roll downs occur because the option is going to expire and the trader wants to retain the position.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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