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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 21944 
Subject: Re: Can't belive I did that
Date: 08/29/24 3:53 PM
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No. of Recommendations: 9
I did sell some CCs recently and those shares are almost certainly going bye-bye. ...Yes, I need to pay those pesky 15% LT cap gains taxes but I'm fine with it.

I presume that since your calls are backed up by your stock, it's a true covered call position at the moment. Consequently as the price has risen, the calls have done badly but the stock has done well, so you haven't lost money in aggregate. The calls themselves look bad, but a CC is a lot like a hedge: never look at one side, look at the whole enchilada. I imagine you are pretty flat in the recent rally.

I mention this only because you can simply close your calls early by buying them back and avoid having your stock called away in a taxable event by waiting till the last of the time value in the calls has evaporated. You can then write fresh calls at higher prices and later expiration or not, your choice.

Maybe this is what you want to do, maybe not, but I just wanted to point out that the situation you paint is not the only one.

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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