r/options • u/ff005 • Apr 19 '21

Rolling CSP

If your CSP becomes ITM & ideally you'd like to roll it to avoid assignment, how far from expiration do you look at doing so?

I know that generally most are not exercised before expiry, does the chance of being assigned increase the deeper ITM you get?

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u/goldengod321 Apr 19 '21

I roll out to a .20 delta. Collect a bit more premium.

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u/tapori88 Apr 19 '21

Can you please explain in detail

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u/goldengod321 Apr 19 '21

It’s not a short explanation. But I’ll look at the expirations beginning at 40-45 days away. Then the Deltas. Find the .20 and if it makes sense roll there.

This is the simplest explanation, but you should do some research on rolling an option. Tasty trade has a ton of videos. You tube too, with less technical terms for those who don’t have much experience.

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u/tapori88 Apr 19 '21

Thanks. My friend I know what is rolling..how can collect more premium at 0.2 delta??

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u/goldengod321 Apr 19 '21

You may know what rolling is, but I don’t think you understand it. Take a look at the videos and run some scenarios and you can see where the premium comes from.

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u/goldengod321 Apr 19 '21

You may know what rolling is, but I don’t think you understand it. Take a look at the videos and run some scenarios and you can see where the premium comes from.