⚠️ Educational tool — not financial advice. Output is for informational purposes only. Verify in your broker before trading. Full risk disclosure

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Should I Roll This Put?

Compare rolling vs. letting it assign vs. letting it expire — with the framework math. Stop rolling out of habit.

📋 Your current CSP

The trade you're considering rolling.

🔄 The proposed roll

The new strike / expiry you'd open after closing the current one.

Position status: OTM — spot $31.02 above strike $30.00 · BTC trigger: No BTC trigger yet

📊 Your 4 options compared

Path A — Roll out

STO new $30.00P at $4.95 (133 DTE)

Net credit+$640
New capital locked$6,000
Weekly CoC on roll0.56%
Time locked19.0 weeks
FAILS 1.2%/wk floor

Path B — Let it assign

(Only applies if ITM at expiry)

Premium kept+$300
Cash freed$6,000
Shares acquired200
Unrealized share P&L+$0
N/A — position is OTM

Path C — Let it expire

Wait 15 days — theta does the work

Premium fully realized+$300
Capital locked until15 days
After expiry — cash freed$6,000
StatusNo action needed
Theta does the work — best for OTM positions

Path D — BTC + walk

Buy back at $1.75 and free the capital

BTC cost-$350
Net realized$-50
% of premium captured-17%
Capital freed today$6,000
Hold for more theta
Framework verdict
🔴 Skip the roll — defer the decision

Roll locks capital 133 days at sub-floor (0.56%/wk). That's worse than wheeling the cash elsewhere.

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When to roll, when to assign, when to expire

Rolling a cash-secured put feels safe because you avoid the "loss" of assignment. But rolling almost always trades short-term comfort for long-term suboptimal capital allocation. The framework rule on rolling is strict for exactly this reason.

The roll rule

Roll only when ALL of the following are true:

  • The roll is for a credit (you collect more from the new sale than the BTC of the old)
  • The new weekly cash-on-cash ≥ 1.2% on the new capital base
  • You still want the shares at the new strike
  • The new DTE is ≤ 30 days (anything longer = locking capital sub-floor)
  • You are NOT rolling up — only down or sideways

When to let it assign

Letting the put assign is usually correct when:

  • The roll fails the 1.2%/wk floor on the new capital base
  • You have enough cash to cover the assignment without forced liquidation
  • You can write a covered call at cost basis that pays for itself
  • The cash freed by NOT rolling can earn more than the roll would have yielded

When to let it expire

If the put is OTM and BTC cost is below 10% of original premium, let it expire. Don't pay $0.05 to close a contract worth $0.05 — let theta finish the job and avoid the commission.

The roll trap

Rolling out 90+ days at a sub-1% weekly yield is the most common mistake in retail wheel trading. The capital is locked, the time value paid in the roll is wasted, and the trader spends 3 months waiting for an outcome they could have realized today.

The math is simple: if the roll yields 0.5%/week and you could redeploy that capital at 1.5%/week elsewhere, rolling costs you 1% per week × number of weeks locked. Over 12 weeks, that's a 12% opportunity cost on the capital base. Always run the math.

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