No point in selling unless you are going to get more than pennies. At least give it a few hours to see if we start deteriorating further. Buying out of the money occasionally can work out, but give it plenty of time. I generally prefer a smaller number of in the money calls, but with something like these ETF's have more often sold options due to the nice premium (although not as attractive as it was a couple months ago).
I hear ya, I had some Apr $95 Calls, that I sold last week. If I still had them I would have kept half of them, but instead I sold at about a 60-65% loss. Fortunately, I'm doing well on the Long FXP postions I have.