I've got a situation(s) where I need to roll deeper in the money call options further out in time. It's tempting to want to sell at a given point, perhaps on a limit order, and then buy later, hopefully around the same price (or less). Since rolling out further in time, I have to pay more time premium, but since the options are deep enough in the money and have very little time premium to begin with (e.g. on SLV the $24 Feb 18 options are $6.50 at time of writing -- Jan 20 -- and only have about 0.10 cents of time premium), it seems like the time value / premium isn't much of a factor.
I.e., options like this fluctuate much more in a given day (0.50, $1.00 or more), than their time premium.
I may begin to hold longer term deep in the money options, rather than rolling every month, am but not sure. I really need some advice on strategies here to roll. It seems like it would be nice to make a little money on the roll, given the high variation of these daily. Perhaps I need to do in a set of orders (I have low commissions, so I'm not worried about that). Perhaps it's best to do at a certain time of the day (e.g. afternoon), when things are quieter, or perhaps take try to take advantage of a nightly swing, but that can be double edge sword. Are there "statistics" or equations that can help this? Does "dollar cost averaging fit in at all"?
FYI am rolling GLD and SLV right now, both pretty deep in the money, relatively little time premium compared to daily fluctuations.