Which is better?

Let's say you own a stock that covered buy a call.
As expiration approaches, the time premium dwindles,
to the point of no time premium.
You're in the last week of the contract, and in the money.
For the sake of conversation,
let's say the stock is at 53,
the Nov 50 call is at 3 on the money, no time premium.
You like the behavior of the stock.

Is it better to buy back the call, and write a new call farther out,
or let it be exercised, and buy the stock again next week, and then write another call farther out.

I would imagine there are tax considerations,
but just generally speaking.

Thank you in advance for your reply.

 

Where do you think the stock is going after expiration?

 

Well, as I said in my post, you like the behavior of the stock.
Let's say you think the stock will stay the same or mildly go up.
Say they have good dividend history, raised every year,
large cap, old company.......almost boring.

I guess what I'm really getting at is can a person consistently
capture the time premium.

But, I guess another way to do that is to write naked calls or puts,
two or so strikes out of the money.
That way you wouldn't tie up the capital of owning the stock.......