Covered Calls and Berkshire Hathaway

Discussion in 'Options' started by Robert Sherry, Feb 9, 2015.

  1. If an investor owns one share of Berkshire Hathaway class A common stock and he sells 15 out of the money calls on Berkshire Hathaway class B common stock are the calls qualified?

    I refer the reader to the following URLs:

    https://ttlc.intuit.com/questions/2586341-a-question-about-berkshire-hathaway-and-the-wash-rule?jump...

    http://www.law.cornell.edu/cfr/text/26/1.1092(c)-1

    Now, if he buys back those calls at a loss, is the loss deducible? Does the straddle loss limit rule apply?

    Note that one class A share is convertible to 1500 class B shares. However, you cannot convert 1500 shares of class B to one share of class A. Also note that one class A share has the same voting rights as 10,000 class B shares.


    Bob