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Expiring next Friday.

Being the gambling type, I'm trying to buy back the June calls early in the week, and then sell new calls later at a higher stock price. Just because the stock is near the low end of its past month's range.

I'm in an odd position.

I've written a few highish strike calls, since I think the prices we've seen in the last few months aren't the lowest we'll ever see in future.
But I've also written a pinch of low strike puts, to get a re-entry on my "underweight" position size. I am a bit cash heavy.

Since I also have an underlying long position, it appears I've ended up with a "covered short strangle".
An imprecise summary:
If the stock remains in a specific range, I gradually make income from time value on both the puts and the calls. Those are the pennies. They add to the rate of interest I'm getting on my cash.
If the stock price tanks, I'll get some stock put to me, using some of my cash pile. That's the steamroller, but actually an outcome I desire at that net entry price.
My upside is limited for the duration.

In short, the stock price has been range bound and net flat for four months, and I'm easily bored.

Jim

and I'm easily bored.

Patience is a virtue, especially in the market.

Sadly for me, I have every little virtue to spare. Or at all, really.

In short, the stock price has been range bound and net flat for four months, and I'm easily bored.

Tools to fight boredom:
A) Yoga, Pranayama and Meditation all might help. Not to "fight" boredom but to go inside and to accept (your) Reality, resulting in boredom simply vanishing.
B) Going to the Casino with it's excitement.

As A) for me works only modestly I'll probably soon add the Casino path to Enlightenment by betting with Puts against Microsoft, Google and Apple (and if I dare even against Nvidia too), as my impression is that the hype/momentum is running out of steam - - - as it did already at the beginning of the year with the SAAS stocks. A bit of gambling to fight boredom seems to be ok if the spiritual tools don't work.

I'm trying to buy back the June calls early in the week, and then sell new calls later at a higher stock price.

This morning was a nice dip on which to close the June calls.

Now, selling new calls can wait for the stock price to bubble up a bit. Maybe 415ish?

Regardless, Friday is no longer a deadline, having closed the June 21's.

Tools to fight boredom:
A) Yoga, Pranayama and Meditation all might help. ...

Oh, I'm not bored in general, just bored with my investments. Which is not a bad thing, but it is good to be self-aware when the urge to do something rears its ugly head.

I have cash sitting waiting for deployment in a Buffettesque way. So, in the same sense that he used to keep his hands busy with "workouts" (merger arbitrage) when there were no other big ideas apparent, I do a little option trading that is statistically likely to be harmless and make a few bucks while waiting for something more exciting to appear. Seeing A shares on sale under $500k would be nice. (just for a few days is fine, I don't want to upset those doing periodic liquidations!)

Jim

Of course you are bored with your investments. So am I. So much that I lately said goodbye to practically all of them (apart from "our" company of course), resulting in a higher % cash than any time before. But: "Nothing is permanent*". Support for that is this from another board:

investing in the likes of META, AMZN, GOOG, MSFT, even AAPL from here, beyond Tesla and Nvidia ....... likely getting a very high win rate (say 5 out of 7) with practically no risk (safer than bonds, as a group, IMO), and very solid returns

The highlighted (by me) part did strike me. I like sentiment indicators. This post for me is one, saying a lot about the state of the 'patient' (the market participants' view of the big seven). If it's representative (a big IF) then me adding 'going to the Casino' (=Buying puts on them, not yet but probably soon) as a ninth limb* to the eight-fold path might work out well.


*Apologies if the allusions in this and the previous email are too subtle and you only see a cryptic post, wondering "What did he drink?".

Now, selling new calls can wait for the stock price to bubble up a bit. Maybe 415ish?

BRK.B over $415 this morning. Sold July 19 $415 covered calls for $6.50.

When this sort of thing works out, it makes me feel much smarter than I really am. Then I remember selling the $375 calls for $15 and that feeling goes away quickly.

When this sort of thing works out, it makes me feel much smarter than I really am. Then I remember selling the $375 calls for $15 and that feeling goes away quickly.

Yes. Ditto.

I have come to the conclusion that I am not smart enough to try to make a profit on BRK going down. When it works out it only made a small amount of money. hen it doesn't work out, I pull my hair out and scream "I must have been drunk when I did this!"

BRK.B over $415 this morning. Sold July 19 $415 covered calls for $6.50.

One week later I just closed these calls for $1.50 as BRKB falls below $405. 77% of full profit!

I'm gambling the last $1.50 that BRKB will perk up to $415 again in the next week or so.

Depending on when it reaches $415 I'll sell the same July call or the August call.

I like the short term calls because it gives me something to do!

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