**Ratio Calendar Combination**

A strategy consisting of a simultaneous position of a ratio calendar spread using calls and a similar position using puts, where the striking price of the calls is greater than the striking price of the puts.

**Ratio Calendar Spread**

Selling more near-term options than longer-term ones purchased, all with the same strike; either puts or calls.

**Ratio Spread**

Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.

**Resistance**

A term in technical analysis indicating a price area higher than the current stock price where an abundance of supply exists for the stock and therefore the stock may have trouble rising through the price. See also Support.

**Return (on investment)**

The percentage profit that one makes, or might make, on their investment.

**Rho**

The expected change in an option’s theoretical value for a 1 percent change in interest rates. See also Theoretical Value.

**Roll Down**

Close out options at one strike and simultaneously open other options at a lower strike.

**Roll Forward (Out)**

Close-out options at a near-term expiration date and open options at a longer-term expiration date.

**Rolling**

A follow-up action in which the strategist closes options currently in the position and opens other options with different terms, on the same underlying stock.

**Roll Up**

Close out options at a lower strike and open options at a higher strike.