nerdzkilla

Hi, I am a regular visitor in here. It is an excellent source of information for newbies like me. I searched the forum for this but am getting no where. I just cant seem to figure out how to position size an in the money covered call. for example: How would someone position size a trade like: Underlying Price: $40, sold call Strike Price: $38, Premium received: $2.50, IV is at 20%, Stop loss is set at stock price $38, at which point the system will tigger an order of selling the stock and buying back the call at a market price. How would I position size this trade so it accounts for a sudden rise in implied volatility when stock price declines in value? To limit losses i would like the position sizing to account for loss in premium value due to increased IV. Can this be done? Looked everwhere for this on the web. There is nothing out there except for a couple of videos where they dont mention volatility at all. Regards, Shiraz