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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: Web436   😊 😞
Number: of 15055 
Subject: Re: Strategy - covered calls in retirement
Date: 07/15/2023 1:14 PM
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To clarify.

I do buy BRK with the premium. For me, my IRA is a long term asset that won't require distributions for 15 years. I will almost certainly never need the IRA for expenses.

The hypothesis is that this strategy allows me to own more shares over that 15 years.

E.g. I recently sold some covered calls in my Roth for 8.24 with strike price 390 for June 21, 2024. I bought more BRK with the proceeds. Worst case scenario, I am forced to sell my covered shares at 390 (about 14% higher). I could always buy them back maybe at a higher price.

The theory is simply that BRK is more easy to value than S@P 500.


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