Yup. My CC looked good a week ago, but it will get taken out today. I cannot believe the run up of BRK-B in the last several weeks, damn near a melt-up.

I deal with covered calls differently than most, it seems.

I had 420 calls expiring today (about 20% of my shares) with a break-even of ~430. This morning with the price at 442.xx, I closed the calls for 22.xx and then sold September 425 calls for 22.xx. I think the net was about -0.50.

As long as I think the stock is above its current value, and I can increase my strike price, I like to sell in-the-money calls. This way, when/if? the inevitable drop comes I can realize a profit. Rolling monthly it could take a while to finally break even with the my original covered call sin, which was a June 360.

It just seems very unlikely that the price can continue to run away from me. The other 80% of my shares would welcome that though.

Berkshire Hathaway FAQ

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