many option holders think that if an option is at a loss, you can "repair" it by rolling it. Google "options stock repair strategy".
They feel that it is extending the (losing) trade, instead of what it actually is -- closing the old option and opening a new option.


Of course it's a separate trade. But it may also be a single investment.

The suggestion of here of rolling out (and maybe up) has nothing to do with "repair strategies". It's simply part of the mechanics of doing this trade, since you can't buy call options with expiry dates more than a couple of years in the future. If you want leveraged Berkshire as a long term hold mechanism, you have to roll every couple of years, just something for your "to do" list like pruning your roses or getting your brakes checked.

Even for someone wanting in the money calls purchased when Berkshire is cheap as a one time trade, planning on closing as soon as the price is higher, you can't really rely on any value based strategy working out in less than two years. Four years is *usually* enough, so you *usually* don't have to roll them more than once in this situation.

In both cases there is no firm expectation of, nor reliance on, the first "leg" of the trade (the first option in the time line) working out profitably prior to expiry. You always have to be prepared for a roll. Consequently nothing to repair.

Jim