Hello Investors,
Our covered call in Berkshire Hathaway (BRKB) is currently in-the-money. The expiration is this Friday and we will hedge our bets a bit through buying more shares today. We bought 25 shares at 210.16 today with the stock down today. We suspect that the stock is going to finish above the 207.50 strike price this week. If that happens then this will help us to start to reestablish a position. If the stock is below 207.50/share then the calls will expire worthless. We may undo this stock addition.
In addition, we are adjusting our DELL 1×2 put spread. This adjustment will lock-in a nice profit on the trade assuming it finishes above 60/share. If the stock falls sharply lower, then we would be better off sticking with the position. We are favoring the upside in the stock and think the adjustment is ideal.
Sold to close: DELL Aug 21st (monthly) 62.50 puts (ratio of 1)
Bought to close: DELL Aug 21st (monthly) 60.00 puts (ratio of 1 only and leaving the other contract live in the account)
Limit credit: 1.50
We will see you tomorrow at the usual 10:00 a.m. ET!