Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 5
“I did my little part to pump up the option volume on Thursday!
I sold Berkshire covered calls.“
...
What has been your “sweet spot” for typical strike price and expiration date if you do not mind me asking? Odds of losing your shares recently? Danke


I've been selling at the money or slightly above, expiry maybe 2-5 months out, on days that my magic eight ball suggests look a little strong or toppy.
My trade this week was selling June $135 calls, which I sold for $12.65.
So, that's equivalent to agreeing to sell some stock for 235+12.65= $247.65 per B or $371475.

I'm not recommending this habit, you understand. Berkshire is quite reasonably valued so rationally it makes sense to wait for a better price.
But hey, if you kinda sorta want to sell anyway, it's not so bad.
As mentioned, it keeps me off the street.

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.