Options Softening Downside - Further example of options downside protection in a pull back from a run up.  As time progresses to the expiration date, the premiums will decline even further. In the worst case, a large decline would reduce them to zero and the money I took in when I sold them will reduce my basis in the stock and any loss. Since several of these positions were originally written for July and rolled up, I have additional income not shown here. It is all about timing and giving up upside for easing any downside loss.  Most stocks don't move fast enough to give up much upside so the usual program is positions expiring worthless or being rolled up to the next period for, often, more income.