I sold 180 of the $620 OI.

I know it seems like a small amount of money. But it is a free $12K.

I can cover 100% of the puts with cash.

For the calls, except for the $620 all are covered by underlying stock. Even the $600's.

The main issue is with the calls it is difficult to sell shares and take advantage of BRK being overvalued and selling. Which rarely happens. Even so, I was able to sell 30% of my shares, all in IRAS, earlier this year at $500+ per share. But I had to hold onto 1,700 shares in an IRA that I would have sold if I did not have linked covered calls. So there was some opportunity cost. However I have been able to sell 3 rounds of covered calls realizing $15+ per share on those 1700 share. So the current price + $15 is a little under $500 per share. Not too bad.

For BRKB shares in a traditional account my basis is too level to sell unless BRK became extremely overvalued. Even at $540 recently, not tempting enough to sell. So selling covered calls is just trying to juice returns a small bit. But it adds up to a pretty good amount of money each year. $600 was the highest strike price available in December 2024.

Berkshire Hathaway FAQ

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