As I previously mentioned I sold 88 covered calls at a strike price of $320 for Jan 21 around a year ago.
I received $3.10 for the original sale.
I bought back 20 today for $2.65
As long as BRKB closes below $323.1 next friday I will be even steven.
We shall see.
As I previously mentioned I sold 88 covered calls at a strike price of $320 for Jan 21 around a year ago.
I think you’ll likely find that, whereas long dated options work best for buying calls to stay long,
shorter dated options will probably work better for you for writing covered calls.
Say, repeated every 3 months.
For one thing, if you write a 3-month call and the stock price starts rising (going against you on this trade, moving in the money),
you can often close it and write one expiring 3 months later that both improves your breakeven and raises cash.
And of course you can afford to write options much closer tot he money, where the time premium is more significant.
A price will tend to rise less in a quarter than it does in a year, on average.
Jim