About Rolling Strike Options

Information on Rolling Strike Options in the Crypto.com App

Valery avatar
Written by Valery
Updated over a week ago

What is Auto-Roll?

Auto-Roll is a feature for Strike Options that helps you ride your trading momentum without any further action beyond the first step.

With Auto-Roll, when your Strike Options position expires ‘in-the-money’ (i.e., you made the correct price prediction for an asset), a new position will automatically be opened for you with the parameters and T&Cs that you used to open the position. This continues until an incorrect price prediction happens and your position expires ‘out-of-the-money’, upon which no new positions will be opened. You can also proactively close your position at any time. This allows you to ride on both upward and downward market movements, actively participating without manually setting up one trade after another.

How do I enable Auto-Roll?

When you activate the Auto-Roll feature for a trade to open a position, it applies to the whole position opened. You may still increase the number of contracts in an Auto-Roll enabled position or close part of it. Auto-Roll continues to be enabled for the position until you proactively close the whole position or when it expires out-of-the-money.

Set up a Rolling Strike Options trade in two ways:

Method 1: Placing a Regular Strike Options Trade with Auto-Roll Enabled

  1. Select your Strike Options contract to place a trade

  2. When prompted, toggle on Auto-Roll

  3. Submit your trade

  4. Receive a push notification confirming that your order has been filled

  5. See that Auto-Roll has been enabled in your Open Position Details

Method 2: Simply select key Auto-Roll parameters to start

  1. Tap the ‘Rolling Strike Options’ banner in the Derivs tab

  2. Set up your Rolling Strike Options trade

    • Choose the underlying asset for your contract, such as BTC or ETH

    • Choose to go long or short

    • Input the number of contracts, capped at a maximum of 100 per trade

    • Auto-Roll orders from this method are placed with a 20-min duration at US$4 - $6 per contract, including fees.

  3. Review your setup, the ‘You Pay’ amount and the Terms & Conditions

  4. Tap ‘Place Order’ and complete biometric/ passcode verification

  5. You have opened a position if your order is successfully filled, and will receive a notification if it is not.

There are certain instances where an order may not be filled, including but not limited to:

  • Having insufficient balance in your USD Fiat Wallet

  • Exceeding the position limit

  • Holding an existing position in the opposite direction for the contract to be traded

  • Having no contracts available within the set contract price range

How Auto-Roll Works

When you set up a Rolling Strike Options order, it will be executed with a contract that is within your defined parameters, where you will pay between US$4 and US$6 per contract, including fees.

When the position expires in-the-money with a correct prediction, you will receive a US$10 payout per contract, minus fees. A new position will be automatically opened with the same parameters and T&Cs, based on the contract quantity of the expired position.

If you have increased your position prior to expiry or closed part of your position, Auto-Roll remains enabled for the open position. The subsequent Rolling Strike Options will be based on the contract quantity of the expired position. Please refer to the Trading Scenarios section for more details.

Order Limits

Rolling Strike Options positions have an order limit of 100 contracts.

If your Auto-Roll-enabled position has more than 100 contracts and expires in-the-money, the new position opened via Auto-Roll will only be for 100 contracts.

Please note that this limit only applies for Rolling Strike Options trades. It does not apply to Strike Options trades you submit via the regular trading flow. Certain position limits still apply for all trades.

Trading Fees

The same fees apply to Rolling Strike Options. The following fees are charged for each contract of a trade:

  • Exchange Fee: US$0.15

  • Technology Fee: US$0.14

Fees are charged when a position is opened by the user or initiated via Auto-Roll. They are also charged when a position is proactively closed or expires in-the-money.

How do I check if my position has Auto-Roll enabled?

A position with Auto-Roll enabled will be labeled as such when you’re viewing your position’s details.

To access the Position Details screen, follow these steps:

  1. Tap ‘See All’ in the ‘Open Positions’ section under the Derivs tab

  2. Select the position you would like to check

  3. In the ‘Auto-Roll’ row, ‘Enabled’ will be displayed if it is activated for that position

  4. The ‘Auto-Roll’ row will not be displayed if the feature is not activated for that position

Trading Scenarios

Scenario 1 - You place multiple orders for the same contract with Auto-Roll enabled

  • Trade: You set up a Rolling Strike Options trade to go long with 30 BTC contracts. You then increase your position with 20 more contracts before the trade expires.

  • Outcome: You now have a long BTC position with 50 contracts and Auto-Roll enabled. When this expires in-the-money with a correct prediction, Auto-Roll will open a new position with 50 contracts and the same parameters and T&Cs as your initial setup.

Scenario 2 - An order via Auto-Roll is rejected

  • Trade: You set up a Rolling Strike Options trade to go long with 30 BTC contracts, but the order is rejected due to insufficient slippage tolerance.

  • Outcome: No position is established. Therefore, Auto-Roll is not enabled even though you intended to set up an auto-rolled position.

Scenario 3 - Your Rolling Strike Options position exceeds the order limit

  • Trade: You set up a Rolling Strike Options trade to go long with 30 BTC contracts. Then, you purchase an additional 100 contracts with the same specifications through the regular trading flow.

  • Outcome: Your long BTC position has reached 130 contracts. You made a correct prediction and your position expires in-the-money. However, only 100 contracts can be automatically rolled over to a new position due to the Auto-Roll order limit. The new position, therefore, only comprises 100 contracts with the same parameters and T&Cs as your initial set-up.

Scenario 4 - You close your entire position before contract expiration

  • Trade: You set up a Rolling Strike Options trade to go long with 30 BTC contracts. Then, you decide to close the entire position to minimize your losses due to an unexpected market downturn.

  • Outcome: The Auto Roll feature is disabled for this particular position since you have closed it entirely. Thus, no new positions will be opened automatically.

Scenario 5 - Your position expires at a loss

  • Trade: You set up a Rolling Strike Options trade to go long with 30 BTC contracts. Unfortunately, due to an unforeseen shift in the market, your position expires at a loss.

  • Outcome: Given that the position has expired at a loss, the Auto-Roll feature will not activate. Therefore, no new positions will automatically be established for the next contract period.

Frequently Asked Questions

What is the difference between Strike Options and Rolling Strike Options?

Rolling Strike Options has the Auto-Roll feature enabled. It allows you to ride your trading momentum by automatically opening new positions with the same parameters and T&Cs when yours expire in-the-money.

If you traded Strike Options without enabling Auto-Roll no new positions will be opened automatically when your current ones expire. To participate in the market again, you will need to manually open a position.

Can I set a limit on the number of auto-rolled contracts within a position?

No. When a position that has Auto-Roll enabled expires in-the-money, the total contract quantity of the expired position will be used for Auto-Roll. If you would like a smaller position to roll over, you must close part of your position prior to expiry.

Are there any additional fees for Rolling Strike Options?

No, there are no extra charges for using Auto-Roll. Strike Options with and without the Auto-Roll feature enabled have identical fees. Exchange and Technology fees apply to every contract traded.

If I enable Auto-Roll for a trade, does it mean that it is enabled for all my positions?

No, Auto-Roll is applied on a per-position basis. You may have some open positions with Auto-Roll enabled and others without it. It depends on how you set it up when placing your trade.

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