Invest your own money, let compound effect be your leverage, and avoid debt like the plague.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 0
what I did.
IF you are short the Dec 500 and 505 calls and they have lost 2/3s of their value, do you buy them back on this weakness or stay short?
Thank you for a real timer call.
No. of Recommendations: 2
IF you are short the Dec 500 and 505 calls and they have lost 2/3s of their value, do you buy them back on this weakness or stay short?
I don't close a short call unless I'm going to write another one at, say, the next lower strike.
No. of Recommendations: 2
“ I don't close a short call unless I'm going to write another one at, say, the next lower strike.“. Thanks, I’m busy with the nba betting scandal news, I haven’t bought the calls back.
No. of Recommendations: 1
IF you are short the Dec 500 and 505 calls and they have lost 2/3s of their value, do you buy them back on this weakness or stay short?
Contrary to the other reply, in your situation, I'd be tempted to close now and wait for some short-term strength before opening a new short call position. Holding a little longer is OK too if you think a sudden rise in the stock price is unlikely. I have no opinion on that currently.
I like to open a short call close to the money and you need to increase the strike price as the nominal fair value of the stock rises. Bear in mind that if USD has lost say 10% to 15% of purchasing power in 2025, the fair value of the stock in nominal USD may have risen more than many people realize (or not of course). I probably wouldn't open a new short call position now at less than 510.
I'm currently short Mar 505 calls which have lost 35% to 40% since I opened the position. Haven't lost enough to close yet.
StevnFool
No. of Recommendations: 0
" Contrary to the other reply, in your situation, I'd be tempted to close now and wait for some short-term strength before opening a new short call position. Holding a little longer is OK too if you think a sudden rise in the stock price is unlikely. I have no opinion on that currently."
Thank you, I currently see no short-term catalyst to increase demand for the common hence I'm not buying them back.
IF, IF, I thought Buffett was going to declare a 1$$ a share quarterly div in the next 30 days I would buy them back now. I doubt he will before Dec unless demand increases for other reasons.
GL.
