In options trading, a Roll Back refers to the act of closing out an existing options position and simultaneously opening a new options position with a later expiration date. This can be done to extend the length of time that the trader has to potentially profit from the trade, or to adjust the trade in some other way such as by changing the strike price or the type of option being traded. Roll backs can be done for various reasons and can be an important part of an options trader's strategy.
