>What is your net cost basis (nut) at this point?
Well, bought at 12.5 (so that's my current NUT), and sold the calls at 1 3/4.
>Plug in the two values to see your worse case scenerio.
Is this the options calculation spreadsheet you're referring to? I keep seeing refs to that, but don't know where to download it from.
The volume in the May 10s is very light, which may make it difficult rolling down.
What do you do in this situation? Do you cover and sell the new covered calls immediately at market? I'm always scared of buying back the calls, and then trying to milk the last 1/16 out against the limit, and (on low volume) not filling, and then having the stock drop 1/2 the next morning... do you generally put in at market orders?
Just looking at quotes today, VVQEV finished at 3/4, had intra-day low of 1/2. If it drops to under 1/2 tomorrow again, I will cover, and then sell either the May or June 10s (my assumption is that stock will likely drift down to or below 10, so I may even end up having these expire worthless).
May 10s closed at 1 13/16 (volume 70), June 10s at 2 5/16 (volume 79).
(Of course, last time I rolled down to protect against downside was in Apple in Jan/Feb, rolled down to Apr 15s from Apr 17.5s, at which point stock exploded upwards to 27, so I wouldn't be surprised if I act as the contrarian indicator again :))
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