Post #18386 by Said on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

Unthreaded | Threaded | Whole Thread (11)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 0

we are at a point that someone writing cash backed puts expiring a year from now would likely get either an attractive entry point

I never did or was interested in this, but if I am not mistaken with the simple way I see it, it indeed looks attractive, so please let me ask a dumb question: With BRK this moment at $482 and 1 year out puts with strike $480 fetching $25 it means: If called I effectively buy BRK for $455, right (minus the interest on the cash until called)?

What surprises me: I just tried at Schwab to put in a fake order to sell such puts. With my non-margin account and being option level 1 only I expected that to be refused with a message "Higher option level required" or so. Not so. Non-margin account and option level 1 really is enough --- or would the expected message appear if I´d dare to click on "Submit"?

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (11)

Prev | Next

Announcements

Berkshire Hathaway FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.