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Strategies & Market Trends : Options

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To: jeremy eddy who wrote (5414)3/22/2000 3:40:00 PM
From: codawg  Read Replies (1) of 8096
 
Actually, if you want both halves of this transaction to execute at once, it is called a "roll out". The order is sent to the floor as both a buy of the existing (short) position to close it and a sell of the new (short) position to open it.

The advantage to doing the transaction this way, as opposed to the 2-piece replies you got, is that both transactions occur at once. You can't get stuck with only half the trade if the market runs away from you.
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