Should I Roll My Covered Call or Let It Expire?
Rolling a covered call means you close your current position and open a new one, often with a later expiration or a different strike. This gives you more control over timing, assignment risk, and premium collection. Letting a call expire is simpler, but you give up flexibility.
So, should you roll or let it ride? It depends on your goals.
🔄 Roll vs Expire Breakdown:
Strategy | When to Consider It | Benefits | Drawbacks |
|---|---|---|---|
Roll | Near expiration, close to strike | Avoid assignment, collect more premium | More active management |
Let Expire | OTM or comfortable with outcome | Simpler, no extra trades | Less flexibility if price moves fast |
💡 Extra Considerations:
Rolling ITM options lets you avoid assignment but may require a net debit (you pay to buy it back).
Rolling out and up (later expiration, higher strike) can boost your potential return if bullish.
Rolling is active management — if you want passive income, letting it expire may be cleaner.
🧮 Try it yourself:
Use our Covered Call Calculator to test a real roll.
Model a 7-day covered call expiring ITM and compare rolling it out 14 days vs. letting it get assigned.