Placing an option rollover order.

Discussion in 'Order Execution' started by bbmak, Mar 18, 2012.

  1. bbmak


    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.
  2. magicz


    thats a limit buy on a calendar