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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch 🐝🐝🐝 GOLD
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Number: of 21938 
Subject: Re: Time to roll those June calls
Date: 06/16/24 10:09 AM
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No. of Recommendations: 14
I'm in an odd position.

I've written a few highish strike calls, since I think the prices we've seen in the last few months aren't the lowest we'll ever see in future.
But I've also written a pinch of low strike puts, to get a re-entry on my "underweight" position size. I am a bit cash heavy.

Since I also have an underlying long position, it appears I've ended up with a "covered short strangle".
An imprecise summary:
If the stock remains in a specific range, I gradually make income from time value on both the puts and the calls. Those are the pennies. They add to the rate of interest I'm getting on my cash.
If the stock price tanks, I'll get some stock put to me, using some of my cash pile. That's the steamroller, but actually an outcome I desire at that net entry price.
My upside is limited for the duration.

In short, the stock price has been range bound and net flat for four months, and I'm easily bored.

Jim
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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