Buy Back Covered Call Option

After you sell a covered call there is not much else you can do. The danger with selling a covered call is that the price of the underlying stock may fall and you will not be able to cut your losses.

If the price of the underlying stock is falling, you could however, buy back the option you have already sold. This strategy is useful when you believe that the underlying stock will not bounce back to recover and you want to get disentangled from the option you have sold.