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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: Mark   😊 😞
Number: of 16623 
Subject: Re: Getting complicated
Date: 08/13/2025 1:04 PM
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Is there any scenario in which the Put is superior to the buy-write Call?

First step is gathering up all the correct numbers.

Buy stock, sell call:
Buy share at 470               -470
Sell 500 call at 25            25
Interest on 445 @ 4.2% (10/12) -15.58
Deliver stock in June '26      500
NET GAIN                       39.42
PERCENT GAIN = 39.42 / 445 =   8.86%

Sell cash covered put:
Sell 500 put at 39                39
Retain 500 secured cash
Interest on 539 @ 4.2% (10/12)    18.87
Put expires worthless in June '26
NET GAIN                          57.87
PERCENT GAIN = 57.87 / 461 =      12.55%

Am I missing some cash flows here? In theory, selling a 500 put and doing a buy stock/sell call should have roughly equivalent results. I think. Or maybe the prices given for these options are not correct?
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