Multi-leg strategies

    What are the mechanics of rolling the untested side of an Iron Condor to collect additional premium credit?

    By Easy Money Scanner · Educational reference · Not investment advice

    The short answer

    Rolling the untested side means closing the current short spread on the side still far from price and reopening it closer to current price to collect additional credit.

    How it works

    This increases total premium collected and can improve breakeven points, but it also pulls that side's strikes closer to price, raising the probability that side will later be tested too.

    An example

    If the stock rallies and the put spread is unchallenged, a trader buys back the original put spread and sells a new one closer to the current price for extra credit.

    Risk & limitations

    Rolling for credit increases risk on the rolled side and can turn a previously safe position into one with elevated breach probability if the underlying reverses direction.

    Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

    Sources & further reading

    Easy Money Scanner provides informational tools using machine learning. This is not investment advice. Trading involves substantial risk of loss. Read full disclaimer →