Jeff 9:26 am on Tuesday, September 5, 2017
Tags: ReverseRoll ( 144 ), SPXcampaign ( 2,265 )

SPX reverse roll

#SPXcampaign Bought to close $SPX Sep 13th 2455/2430 put spreads for 6.60. Sold for 4.70 last Thursday as a roll.
#ReverseRoll: Sold $SPX Sep 13th 2465/2490 call spreads for 6.75. Was able to move up 10 points and still get a credit on the roll.

hcgdavis 10:03 am on Tuesday, September 5, 2017

Jeff, just curious on these reverse rolls what percentage ends up working out as they approach expiration? Do you find majority or do a lot of them end up being whipsawed?
- Jeff 10:06 am on Tuesday, September 5, 2017
  
  Never studied them to that extent. Definitely a positive return in the end. They can always be revered again. In fact I think this one was whipsawed.
- Jeff 10:09 am on Tuesday, September 5, 2017
  
  I roll in so many different ways. The key is to just replace anything you lose in debits with credits from new spreads. I don;’t always replace it immediately, but in this case a good roll was possible. Sometimes in aggressive rolls like this one, whipsaws will happen, but you can roll again. One key to remember is it’s much easy to roll OTM and ATM than ITM, but all are possible.
  - hcgdavis 10:15 am on Tuesday, September 5, 2017
    
    thanks