Rolling is closing one options position and opening another (usually at a different strike and/or expiration). Most commonly done with short positions.
Extend Duration: Your covered call is about to expire. Instead of taking assignment, roll it to next month.
Adjust Strike: Your covered call is ITM and at risk of assignment. Roll it up (sell a higher strike call) to reduce assignment risk.
Reduce Loss: Your losing trade needs more time. Roll it to a later expiration to give yourself more time to be right.
Roll Out: Close your 30-day call, open a 60-day call at the same strike. Extend your income collection.
Roll Up: Close your assigned-risk $190 call, open a $200 call for next month. Move to a higher strike to reduce assignment.
Roll Down: Close your OTM put that won't expire worthless, open a lower strike put. Try to salvage some profit.
Roll Out and Up: Close your current call, open a higher strike call one month out. Extend profit potential.
Rolling involves two transactions (close and open), so you pay the bid-ask spread twice. Some brokers let you roll in one transaction at a better price.
Related: Closing a Position, Covered Call, Expiration Date
