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Hi All,

Hoping people can help clarify/confirm my time value calculation.

I sold a PUT for JD $41 (currently trades at $37), option currently trades at $4.22, implying time value remaining of $0.52.

What is confusing me is that the recommendation from the Fools was a strike price of $43 for the PUT. Given that the option currently trades at $5.96, this gives a TV of $0.26.

Should the price fall slightly further TV would fall into negative territory and shares would be assigned. Shouldn't we be rolling to avoid shares being assigned? How low would we typically let TV get before rolling?

I couldn't find any articles in the Options U section, so appreciate peoples thoughts.

Thanks,
Marinos
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