No. of Recommendations: 8
The gap is constantly increasing. At the moment I am writing this it's BRK up 6.7% vs. S&P up 2.3%, so Berkshire up nearly 3x as much. Sure, that will be different in an hour, in the one or the other direction, but it makes Berkshire clearly stand out, so I still think there's more behind (flight to safety, fitting the very polarised CNN index components).
Quite the move, at any rate. ($444.22 as I type)
The market is inscrutable, so it's hard to ascribe a motivation to any market price move. I do think the momentum boys have jumped on for now.
For the first time, I'm thinking of buying a few puts. Not that my portfolio need protecting, but I might make a buck next time the market dips. It's hard to pick a suitable one, though. Not only do you have to be right about the direction, but also the timing and size of drop. If the idea is to make most of the profit on rising time value, (the most difficult way to make a buck from options), you'd want long dated ones. Time value is maximized the first date that the strike price hits the option's strike. $4.70 will get you a January $400 put, but that might not be long enough. Maybe $9.15 would get you a June 2025 $400 put.
But then again, surely there are other stocks that would drop a whole lot more in a market blip, and perhaps more predictably.
Jim
