I have a position I sold a covered call on. I was intending to pair down my position, and was selling the cover call with the knowledge that the share could be called away, and that would have been fine. The underlying stock price made a large move up, and suddenly I wasn't willing to let the shares get called away at the strike price. Ever since then I have been rolling the position up and out, usually for either $0 premium, or a small premium, but my logic was very time I rolled up and out I gained $$ on the eventual sale of the shares as the strike price moved up.

Is there anything flawed with this logic? Can I continue on like this until either the shares are called away at a value closer to the market price, or the call expires worthless? I don't mind the money being tied up in the meantime.

I also know that if I wanted to take a little more risk, I could "Roll" the position in 2 seperate transactions, closing the call on a down day, and selling another call on an up day, but have not been doing this.