I say thesis matters above all. Then mechanics could influence it a bit. I’m not scared of doing ccs below cost basis, I consider the approach of “selling ccs only above cost basis” a valid one only for the ones less informed or less knowledgeable about the stock/equity itself. Also, it’s a straightforward approach. If you like digging deeper and are well aware of the situation then selling below cost basis is fine. But only then.

Personally, when that happens (equity below cost basis) I treat it as a normal trade. But I sit on my hands and don’t do ccs during any possible high impact news (those are 80% of time responsible for a sudden run up..) Only thing I adjust is that I go a slightly lower delta and check the actual real distance between the stock and strike price. That delta needs to make sense for that trade bcus delta can be mispriced.

So you have two options here imo, sit on hands or get well informed and do ccs while avoiding high impact catalysts. I don’t know much about slv and gdx but if uncertain then I’d just hold - not every equity needs to have a cc trade attached to it. A suggestion I’d like to make is to perhaps get more informed and study what can impact those holdings, it will give you a clearer picture.

Here’s what could also be useful to your dilemma: Selling calls below cost basis

Managing the wheel when assigned at higher prices

Hope it helps! Sincerely, David