Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A
Shrewd'm.com Merry shrewd investors
Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A


Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (39) |
Author: jetjockey787   😊 😞
Number: of 12538 
Subject: Re: I’m Trimming - Filed @472
Date: 09/01/2024 8:03 PM
Post New | Post Reply | Report Post | Recommend It!
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.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Unthreaded | Threaded | Whole Thread (39) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds