Rolling Credit Spreads Explained
Rolling credit spreads explained. Learn when traders roll bull put and bear call spreads, how they compare time, width, and net credit before adjusting.
Frequently asked questions
Does rolling a credit spread always reduce risk?
No. A roll can reduce risk if it improves strike distance or lowers total exposure, but it can also add risk if width expands or the trade stays exposed to the same unstable conditions for longer.
Should I roll every challenged credit spread?
Usually no. Rolling makes the most sense when the original thesis still has support and the new spread clearly improves time, strikes, credit quality, or total risk.
Can I roll one side of an iron condor?
You can, but doing so may change the position from a balanced range trade into a more directional structure. Many traders review the whole condor again before changing only one side.