No. of Recommendations: 2
I admit to having indulged in a pinch of covered call action today. Gives me something to do.
Yes, me too! I was going to post some questions about forward returns vs price for covered calls, but Shrewdm was giving a "505" response, so I just pulled the trigger.
The stock has run up 13% in the past six months, and it seemed unlikely that it could keep that pace for the next 18 months. Plus, I figure there's a tad of price risk, temporarily, should a C-Suite person expire in the next 18 months. After all, Warren is 92, and Charlie is 99(!).
With a midday price of $350.7/B, the Jan '25 370 Calls were selling at around $33, which meant that the breakeven was $403/B, which is 15% above today, after the nice 6-month run-up. Figured it was worth a dabble. I covered about 1/2 my position, and will reevaluate the rest after Q2 results come out. Google Fu says that will be sometime around August 4th.
Tails
