Wheel Glossary
Roll up in Wheel Trading
Roll up means closing an option and reopening at a higher strike. It matters because it changes directional exposure and can improve exit pricing when conditions allow.
Definition
Closing an option and reopening at a higher strike.
- 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 changes directional exposure and can improve exit pricing when conditions allow.
- 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
Rolling up without checking whether the extra upside is worth the additional risk.
- 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.
Related playbooks
All playbooksWheel Strategy Glossary
Cash-secured put in Wheel Trading
Cash-secured put explained for wheel traders: what it means, why it matters, and the mistake that usually causes bad decisions.
Wheel Strategy Glossary
Covered call in Wheel Trading
Covered call explained for wheel traders: what it means, why it matters, and the mistake that usually causes bad decisions.
Wheel Strategy Glossary
Premium yield in Wheel Trading
Premium yield explained for wheel traders: what it means, why it matters, and the mistake that usually causes bad decisions.
Wheel Strategy Glossary
Adjusted cost basis in Wheel Trading
Adjusted cost basis explained for wheel traders: what it means, why it matters, and the mistake that usually causes bad decisions.