Subject: Re: Calls: end of an era?
I was looking at the implied interest rates built into the prices of various Berkshire calls.

For example, the lowest-strike BRK call for January 2026 has an implied interest rate of 7.60%.

A higher strike call (but not a super speculative one), for example strike $260, is showing an implied rate of 8.22%.


The move down in interest rates over the last 40 days has had a pretty dramatic impact on the implied interest rates Jim mentions above. The Jan26 190s look to be under 6.5% right now and the 260s are probably about 6.8%. I’m not a buyer at these levels but the lower rates are encouraging. Maybe there is another opportunity on the horizon.

Jeff