Hedgey
Returning / Rolling Calls
Once a call has expired (now > expiration date) the Short may return or roll the Call
After expiration has passed and the call has not been exercised, it is "expired", and can no longer be sold, exercised or traded. The call long has no choices for what can be done with the call, it is worthless to them. The Short position, however, still has their tokens held in escrow. As such, the short can choose to return the tokens held back to them, or they can roll the call forward and resell another option.
Returning a call is simply just an input, and the smart contract checks to make sure it is truly expired and then returns the tokens in escrow back to the call short. Method is returnExpired
If the call short would like to resell their tokens for another call, they may roll the call, picking a forward date in time. The short may also change any parameters about the call they would like (as it closes out their old call and creates a new ask). If the token amount changes, then any differences will be pulled into the contract into escrow or sent back to them as a refund. The method is rollExpired.
Last modified 9mo ago
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