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How Is Basis Risk Typically Managed in a Rolling Options Hedge Strategy?

Basis risk in a rolling hedge is managed by carefully timing the roll-over of the expiring contract into a new, longer-dated contract. The goal is to minimize the transaction costs and the market exposure during the short period between the expiration and the new contract initiation.

Using a "roll window" and monitoring the spread between contracts helps optimize the process.

How Do Transaction Costs and Execution Fees Affect the Profitability of an Option Trading Strategy?
How Do Algorithmic Trading Strategies Aim to Minimize the Effective Spread?
What Is the Risk of “Contango” When Rolling a Position?
Why Is ‘Rolling’ a Futures or Option Position a Common Practice in Long-Term Hedging?