For an already initiated Covered Call, I wanted to ask if there is an optimal price to roll? For instance, if I buy/write a stock worth $10 with a strike price of $12, I can be faced with 3 scenarios as time progresses:
- The price of X will be less than $10
- The price of X will be equal to $10
- The price of X will be greater than $10
For the example, we'll assume X remains fairly stable around the $10 mark, i.e. price fluctuations are not greater than 10% either way, and we will roll to the same strike price of $12.
I understand the concept of bid and ask for options pricing...just wanted to check if there is, statistically, computationally, or otherwise, a better underlying price to roll the call to a subsequent time period.