No. of Recommendations: 1
What I would do is allow the market to pay me more money to wait for the weighing machine. Buy back the June 540 and sell September 540 (or Jan 550 or whatever). The premium and breakeven (net exit price) will be higher, so you keep that extra money, and the odds of exercise drop back near zero.
You can do this pretty much forever. Sooner or later there will be some price weakness and you pocket the entire price of the last contract.
Thanks.
BRK is a bit scary now. It has been overvalued according to P/B for over a year now, since Jan 2024. BRK-B was 385 then and is pushing 540 now. That's like a 40% gain. How long can the price stay irrational or get even more so?
It looks like rolling to the Sept 540 would net about $1300 per call.
Decisions, decisions.
The way things are shaping up, there is a good chance that the bull market will be picking up. Could BRK participate, even as "overvalued" as it is?
