No. of Recommendations: 0
Rarely exercised and always able to buy back for less than exercised.
What do you mean by buying back? The stock itself or the call? I'm a neophyte when it comes to options so forgive my ignorance. I understand the basic concept of what you guys are doing in terms of collecting some income with the premiums while waiting for a pullback, but what I’m doing is something entirely different. I'm trying to exit BRK with large sums at good price points, put it all in cash, and wait for a rainy day. Another way of saying that is I'm making a significant wholesale change in my asset allocation from 85% net worth in BRK to 60% net worth in BRK and putting the proceeds in cash for now. I don't understand how writing call options will allow me to do that effectively, safely, and quickly, with my very substantial positions in BRK. I can see playing around at the fringes with selling a few calls, to boost your return a bit, but I’m exiting, not allowing these positions to sit there, to wait in case I have to cover the option, nor have the intent of buying the stock if called, even if I didn't have long positions to surrender in those accounts to begin with.
