No. of Recommendations: 1
So I haven't lost money, but I've left a hefty amount on the table by guessing wrong on the CC, right?
I believe that's correct. But I think what Jim is saying is that if you think the bet is still a good one (i.e. BRK price will eventually drop to closer to the strike price of your call) then you can extend the bet by purchasing back the call you sold and selling another one with a longer time to expiry. You may be able to both increase the strike price and pocket a few bucks in the transaction (if you're lucky) since you're selling some time value. And of course if you are correct, you can avoid paying the taxes when the calls expire worthless :)
John
