How do you decide if you roll or just let the stock get called away?
I am kind of torn: I sold one contract CC for NVDA, expiry 15th May, Strike 200. Ouch. This was before the NVDA rebound. I have 300 stocks overall, so OK. I didnt think we will see 200 that early but here we are. I can buy back tomorrow for probably around 2.5k, sell a new call for maybe 1k expiry June, Strike 250.
So 500USD (premium collected) - 2500 (buy back) + 1000 (new CC) = -1000USD. If stock goes up to 250, I lost 10USD a stock.
How do you make those decisions?! Any logic you follow?
Or you let the stock call away and write a CSP?
Thanks for ideas!
Edit; bought NVDA at 135USD