Post #5554 by LiveWire10k on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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I'm an options newbie. In fact I just sold my first covered calls -- 6/21 & 9/20 at a strike price of 400.

Three immediate questions:
(1) I know that Jim says this will never happen, but if the stock gets called away will my broker just withdraw the shares from my account?

(2) Is it better to use a strike price closer to the current price or is the selection of the best strike price just driven by the option premium?

(3) (Related to the strike price question in (2))If the stock price declines - say BRKB drops to $370 - would you be better off having used the higher strike price? $370 is $15 below the $385 strike but $30 below the $400.

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