In SSE 50 ETF options trading, rollover (liquidation) is an important operational skill that can optimize positions in different markets** and improve investment efficiency. Here's a detailed explanation of the rollover techniques in three common situations and how they work:
The first case:
Earn bigger profits.
When there is a one-sided continuous ** or ** trend in the market, investors can earn greater profits by rolling over positions. For example, in a continuous ***, you can roll over the call contract with a lower strike price to a call contract with a higher strike price to lock in part of the profit and track the subsequent trend. Conversely, in a continuous ***, the put contract with the higher strike price is rolled over to the lower strike price.
How it works: By converting real to virtual, that is, converting profitable contracts into the same number of at-the-money or shallow imaginary contracts, improving the utilization rate of funds and enjoying greater option leverage, so as to achieve comprehensive profit accumulation.
The second scenario:
Reduce losses. When the market is sideways or small***, in order to reduce losses, investors can move the original out-of-the-money contracts with a higher strike price to the in-the-money contracts with a lower strike price to reduce the loss of time value during the ** period.
How it works: By turning virtual into real, reduce the adverse impact of volatility on options** and reduce the risk of time value loss of option contracts.
Option sauce collated and released.
The third case:
Avoid huge gamma fluctuations.
When the current month's contract is about to expire, investors can roll over their current month contract to the next month's contract in advance to avoid huge gamma fluctuations. The rollover should be carried out gradually, moving a little bit every day for the last week until the rollover is completed, so as to enjoy both the large gamma and avoid the huge fluctuations brought by all the large gamma.
How it works: By rolling over to the next month's contract in advance, you can avoid the impact of huge gamma fluctuations on your positions and maintain a stable investment strategy.
The above are common rollover techniques in options trading, and investors should flexibly use rollover operations according to the market** and personal risk appetite to achieve investment goals.
The choice of the timing of the rollover
The first case:: Sideways or small correction of the relay When the market shows a period of *** relay, or there is a sideways or small correction, investors can consider moving their positions from the bottom to the top. At this time, high-strike contracts tend to fall more, and it is suitable for rollover operations to lock in part of profits and track the follow-up trend.
How it works: By moving the position from the bottom to the top, the transfer of profitable contracts to high-strike contracts is realized to maximize profits and catch the follow-up
The second scenario:: *Distance: In the market**, when the increase of the two contracts is basically the same and the distance is about to be widened, it is the appropriate time to carry out the rollover. At this point, you can consider adjusting your position to adapt to changes in the market.
How it works: Adjust the position structure by rolling positions when the increase is basically the same, so as to respond to market changes and seek better investment opportunities.
The third case:: When the market is large** and the difference between the increases of the two contracts is large, investors should carefully choose the timing to move their positions. In this case, you should pay attention to the risk of falling back and avoid losses caused by blindly chasing up.
How it works: When there is a large **, observe the difference between the increase of the two contracts, and carefully choose the time to move the position to avoid the risk of falling back and maintain a stable investment strategy. Options