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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: LiveWire10k   😊 😞
Number: of 21943 
Subject: Re: out of the gate strong
Date: 01/26/24 3:54 PM
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I'm an options newbie. In fact I just sold my first covered calls -- 6/21 & 9/20 at a strike price of 400.

Three immediate questions:
(1) I know that Jim says this will never happen, but if the stock gets called away will my broker just withdraw the shares from my account?

(2) Is it better to use a strike price closer to the current price or is the selection of the best strike price just driven by the option premium?

(3) (Related to the strike price question in (2))If the stock price declines - say BRKB drops to $370 - would you be better off having used the higher strike price? $370 is $15 below the $385 strike but $30 below the $400.

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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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