Hi,
I am a littlebit confuse to place an option rollover order.
I understand the concept, you flat the position of current month, and you open a position next month. However, my confusion is on when you place orders(spread order)
Let say I have cash-secured put contract
Short a
04/12 $10 Put Contract
bid/ask: 0.11/0.15
and I want to roll to
"05/12 $10 Put Contract"
bid/ask: 0.18/0.21
when I want rollover, I place an order and add an option leg.
long 04/12 $10 Put 0.15
short 05/12 $10 Put 0.18
the condition is what I confuse.
limit buy
limit sell
which one should I use? I only can choose one
should I use limit buy or limit sell? and the price there?
Can some experienced traders clear my confusion.
I am a littlebit confuse to place an option rollover order.
I understand the concept, you flat the position of current month, and you open a position next month. However, my confusion is on when you place orders(spread order)
Let say I have cash-secured put contract
Short a
04/12 $10 Put Contract
bid/ask: 0.11/0.15
and I want to roll to
"05/12 $10 Put Contract"
bid/ask: 0.18/0.21
when I want rollover, I place an order and add an option leg.
long 04/12 $10 Put 0.15
short 05/12 $10 Put 0.18
the condition is what I confuse.
limit buy
limit sell
which one should I use? I only can choose one
should I use limit buy or limit sell? and the price there?
Can some experienced traders clear my confusion.