Subject: Re: A strategy I read about
Put half your allocation into the longest dated, lowest strike calls. Put the other half into calls expiring a year earlier than that.
Hmmm. At Sunday with markets closed,
The Jan'27 230 call is 308, so that would be $30,800 per contract.
230+308 = $538. Current price 514.
55% ITM, 6.24% effective interest rate.
For the year earlier, Jan'26. Would that be the deepest strike, 190 or the same strike, the 230? Or the same contract price?
The 190 is $334, the 230 is $295. Roughly the same interest rate.
So we're talking about $63,000.
Not bad leverage, though, about 1.6X.
Although at P/B of 1.7, this may not be the optimal time to buy calls.
But then, selling out of BRK at the "nosebleed high" of 400 wasn't a particularly great move.
a bunch of calls
Bunch! LOL.
Q: What do you do when you need to go to the store but your Maserati has a flat tire?
A: No problem, take the Ferrari.
(I slay me.)