No. of Recommendations: 7
Hi, I don't get it. The idea is to sell calls into big rallies not on pullbacks, what's your thinking?
Selling a Call is a bearish position. BRK tends to trend for a while so I guess I'm looking for an indication that the rally is stalling / about to reverse. I'm not looking for a big pull-back. A long time ago, Jim did some research that seemed to indicate that you should consider a rally in BRK intact as long as it remained within 3% of its recent new high. I am going from a distant memory but I believe it was if it closed more that 3% off it's high you would no longer consider the rally intact. I can't remember if the high was high close or intraday high.
StevnFool
