Rolling a put option

Discussion in 'Options' started by Koppanyi, May 12, 2005.

  1. Koppanyi

    Koppanyi

    An example...
    Let's assume that the underlying stock was at $34,5 and I've sold one 35 put for $1 (ITM) and simultaneously bought one long-timed 35 put for $6. Two weeks later the stock price fell to $32 so I was excersized so I was obligated to buy 100 shares of the underlying stock for $35. Now I want to roll up my long-timed put above strike price of $35 in order to sell the stocks at this higher price.
    Does rolling work in this situation?