Calculate the net credit or debit on any options roll — buy to close (BTC) plus sell to open (STO). See how the roll affects your adjusted cost basis and whether you recovered the BTC cost.
Rolling an option means buying to close (BTC) your current position and simultaneously selling to open (STO) a new one — typically at a further expiry or different strike. The net credit is STO premium minus BTC cost. If positive, you collected net premium; if negative, you paid a debit to roll.
For wheel strategy traders, each net credit from a roll reduces your adjusted cost basis, improving your breakeven price on assigned shares.