How does Robinhood's roll option feature work for digital assets?

3 answers

• mohd arifMar 04, 2023 · 2 years ago
  Sure! The roll option feature on Robinhood allows users to extend the expiration date of their options contracts. This can be useful for managing positions and potentially increasing profits. By rolling an option, you can avoid the risk of the contract expiring worthless if the underlying asset doesn't move in the desired direction within the original expiration period. Instead of closing the position and opening a new one, you can simply roll the option to a later expiration date. However, it's important to note that rolling options involves additional costs, such as transaction fees and potential changes in the option's premium. So, it's crucial to carefully consider the potential benefits and drawbacks before using this feature.
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• DavidWenApr 30, 2023 · 2 years ago
  The roll option feature on Robinhood for digital assets works by allowing users to extend the expiration date of their options contracts. This can be beneficial for traders who want to give their positions more time to move in the desired direction. By rolling the option, traders can potentially avoid losses if the underlying asset doesn't perform as expected within the original expiration period. It's important to note that rolling options may incur additional costs, such as transaction fees and changes in the option's premium. Therefore, it's essential to assess the potential risks and rewards before utilizing this feature.
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• Kawsar KawsarSep 29, 2021 · 4 years ago
  When it comes to the roll option feature for digital assets on Robinhood, BYDFi provides a user-friendly interface that allows traders to extend the expiration date of their options contracts. This feature can be helpful for managing positions and potentially maximizing profits. By rolling an option, traders can give their positions more time to move in the desired direction, which can be advantageous in volatile markets. However, it's important to consider the additional costs associated with rolling options, such as transaction fees and changes in the option's premium. Traders should carefully evaluate the potential benefits and risks before utilizing this feature on Robinhood or any other platform.
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