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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch ✹✺🐝 SILVER
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Number: of 22353 
Subject: Re: Price performance
Date: 12/22/23 6:15 PM
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No. of Recommendations: 11
Hmmm, if I were feeling a bit light on LEAPS due to selling in the summer, would this be a better than average, neutral, or worse than average time to sell stock and buy 2026 Calls?

If you're keeping the total number of shares of exposure the same, selling X hundred shares to buy X calls, this is probably not a bad time.
Stock price high-ish, market calm. A good day in general to be a net buyer of time value.
The only fly in the ointment is that I think interest rates are going to come down, so the rates built into the calls might (?) be better some time in 2024 than they are now (mostly 6.5-7.5%). Or not--hard to say.

Conversely, if you're thinking of using all the stock proceeds to buy calls--as an addition to your total position size--no, I don't think today is a great day to do add. The stock isn't cheaper than average today, so I don't see it as a particularly auspicious time to add to your position. I have a hunch (worth no more than the money it's costing you) that the stock price may be lower in absolute terms some time in the next year. Kind of a bummer for me, as I would like to be adding--I have a "liquidity event" coming next month and for me the best thing would be a tanking price so I could load up at a great entry. I hope nobody minds if I hope for a brief crash?

Jim
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This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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