Wheel Glossary
Roll out in Wheel Trading
Roll out means moving an option to a later expiration date. It matters because it buys time for the thesis to play out and can repair near-term pressure.
Definition
Moving an option to a later expiration date.
- Translate the term into position sizing and trade management, not just vocabulary.
- Ask how the term changes your entry, adjustment, or exit.
Why it matters in the wheel
It buys time for the thesis to play out and can repair near-term pressure.
- A useful definition should change what you track each week.
- If the term does not affect capital, assignment, or premium quality, it is usually secondary.
Common mistake
Using extra duration to avoid admitting the original setup no longer works.
- Most wheel errors come from skipping the denominator behind the term.
- Write the term in plain language inside your trade notes before you use it.
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