Hello Investors,
The breakout in BRK-B shares has been sharp and likely has more to go big picture. We are getting a very minor dip so far today. Obviously a short-term pullback could and perhaps even probably will occur. However, we would expect that any pullback will be shallow and not give back much in price. Also, it might be that we zoom up to 235/share and then only pull back to 230/share on a dip. In other words, the coming dip might still be higher than current prices given the magnitude of this breakout. So, we have decided to “buy back” and take a loss in our covered call. For now, we will leave our shares uncovered. We will look to resell a covered call if we feel that the stock is running out of gas for a time.
Buy to close: BRKB Dec 18th (monthly) 230.00 strike calls
Limit debit: 4.90
Haave a great week!