When rolling ITM CC, I am trying to write for same credit as strike improvement. Right or wrong, it's been playing out well. For instance, a 8/12 855 cc can be rolled to 8/19 for 4.65 , for slightly less credit than improvement. If I roll two weeks out, the 19th it's roughly the same, close to $5 for $5 improvement. That works well up to Sep 2nd at 870. The 9th of Sep, there is a drop-off to average $4.25 weekly (improvement of $20 for $16.93). I know the expectation is we rocket. I have BPS with short legs at 1150 for December, couldn't be happier. Not knowing whether we go up or down, I do know that the deeper ITM the sold CC are, the less forward roll credit I've been able to get, eventually the shares will be called. I am considering rolling this contract to Sep 2nd, locking in the credit I aim for weekly per contract and improve strike to capture the appreciation if/when called away. Side benefit, it's a contract I won't need to watch weekly... one I will review expiry week. It's an arbitrary minimum roll credit capture ($5) I set for myself. Any reason why I'd not want to take this approach, instead keep evaluating and rolling weekly?
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