Comparison of Roll Up and Standard Put Option Payouts Under Three Price Scenarios (3 graphs)
A put option with a special provision which provides for reset of the strike to a higher level if the price of the underlying rises enough to hit the trigger price- which is usually the same as the reset strike. The rolled-up put then becomes an up-an-out put, with an outstrike at an even higher price on the underlying. If the underlying asset price hits the outstrike prior to maturity, the put is canceled and expires worthless regardless of what happens to the asset price after that time. See also Roll-Down Call. Compare with Strike-Step Option.
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