Please be open to feedback and constructive criticism from others, and consider their suggestions and advice when making decisions or forming opinions.
- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 1
Many here are waiting to buy a relatively(!) cheap Berkshire again. Is the recent price action enough for some here to do that? Or is it a start, good enough to tip a toe in already (I kind of did that; just sold around 7% of my puts; surely too early, as always)?
No. of Recommendations: 1
I was still short 20 , june 20,25 - p470, that I was going to let expire this Friday but the stock is so weak today, I bought them back, made 12 points. With team trump in charge, we always have to be alert to, team trump connected self-dealing grifters, front running material news on the group. Who knows, hence not worth trying for the extra 40 cents. News can be horrific if they want to punish those who would demonize the crypto space. Reality, just sayin. Good luck all.
No. of Recommendations: 1
From Barrons, what a country,
" Justin Sun’s Crypto Group Going Public in Reverse Merger
Crypto billionaire Justin Sun—also known as the guy who bought the banana artwork for $6.2 million—is taking his Tron group public in a reverse merger with a Nasdaq-listed toy company. It plans to change its name from SRM Entertainment to Tron and use company funds to buy Tron cryptocurrency.
It’s another example of a resurgent crypto industry and a crypto-friendly administration. Sun bought more than $20 million of President Trump’s memecoin to attend a private May 22 dinner. He previously invested $75 million in World Liberty Financial, the Trump family-backed crypto venture.
SRM is a Florida-based company that makes toys, souvenirs, and stuffed animals for theme parks. It has an agreement to acquire $100 million of Tron’s TRX digital tokens. Sun was named an advisor to the venture.
SRM said it was acquiring TRX to establish a Tron “treasury strategy,” by adding cryptocurrency to its balance sheet. SRM will issue 100,000 shares of its Series B Convertible Preferred Stock and issue 220 million warrants. The investment is valued at $210 million when warrants are fully exercised.
In February, the Securities and Exchange Commission asked a court to pause its fraud lawsuit accusing Sun and three of his companies of manipulating the market for Tron’s TRX token. Sun has said his World Liberty investment wasn’t politically motivated and called the SEC’s lawsuit meritless.
What’s Next: Dominari Securities LLC is the exclusive placement agent for the deal. It is a subsidiary of Dominari Holdings, in which Eric Trump and Donald Trump Jr. invested in February. Both are now members of its board of advisors. The White House said the transaction had nothing to do with the president.
—Janet H. Cho and Paul R. La Monica"
No. of Recommendations: 12
I don't think recent valuation levels look very attractive.
But they are lower than they were, so there have been moments lately that writing low-strike cash-backed puts seemed like it could be a useful strategy for some.
e.g., for someone watching the rate they're getting on cash slowly falling, you can add another 4-5%/year to that and (maybe) get an entry that is a good valuation level.
For this purpose, counterintuitively it makes sense to go for slightly longer dated puts. Say January, not September. The extra premium reaches farther down into the discount zone, and that "farther down" entry price is more likely to be a low multiple further in the future than it is now.
Jim
No. of Recommendations: 2
I don't think recent valuation levels look very attractive.
But they are lower than they were, so there have been moments lately that writing low-strike cash-backed puts seemed like it could be a useful strategy for some.
e.g., for someone watching the rate they're getting on cash slowly falling, you can add another 4-5%/year to that and (maybe) get an entry that is a good valuation level.
For this purpose, counterintuitively it makes sense to go for slightly longer dated puts. Say January, not September.
That is funny. My June 2025 puts are expiring for a small profit. I didn't buy very many of them, but I was homesick for having some skin in the Berkshire game. And with the price of Berkshire shares falling a little in the last few months, and maybe some worrying about what happens after December 31st, the puts are looking a little juicier, so I sold some 450 June 2026 puts earlier this morning (at $18.50 and some more later at $19.45; 23% implied volatility). Still dabbling, but what's a guy to do, with prices so stubbornly high? I sold my shares at about $425, and if I can buy them back 2 years later at $450 that seems more reasonable. And if the price doesn't get down that low, I will have a (small) consolation prize.
No. of Recommendations: 9
I sold some 450 June 2026 puts earlier this morning (at $18.50 and some more later at $19.45; 23% implied volatility). Still dabbling, but what's a guy to do, with prices so stubbornly high? I sold my shares at about $425, and if I can buy them back 2 years later at $450 that seems more reasonable.
You're doing better than that, really.
If your premium was around $19, that's a net entry price of strike-premium or 450-19= $431. That is pretty likely to look like a nice entry price a year from now. If things were to be sort of on-trend (ha!), you'd definitely expect a market price higher than that. Maybe $455-475 as a central expectation??
As an example, I was looking at the January $450s, which traded at $13 shortly before close. Net entry $437, which will probably be P/B in the vicinity of 1.37 P/B at the time, give or take a few points. Or a cash return of 5.1%/year rate on the capital committed. (plus, assuming no assignment, the interest you're earning on that cash, 3.83% at the moment for US cash on deposit at IB or 4.31% if you buy a T-bill). A person could do worse than a rate of 8.9-9.4%/year for sitting on cash for half a year.
Jim
