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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Said 🐝  😊 😞
Number: of 19827 
Subject: Re: Long-dated calls
Date: 03/26/26 12:20 PM
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No. of Recommendations: 1
Write a January 2025 $480 put for a premium of $27.50

Outcome 1: The stock is assigned, probably shortly before expiry. You get a net entry price of $452.50......

Outcome 2: You keep the cash......Making 11%/year on your cash this year isn't a bad prospect.


May I, who just followed Jimīs suggestion by writing Janī27 $490 puts for $34.9 (resulting in case 1 a CAGR of 13% on the cash, in case 2 in buying BRK for effectively $455.1) humbly add a 3rd option?

As is the case now since months BRK goes sideways, up and down in the range $470-$510 or whatever. Mid year you change your mind because you see other opportunities to invest your cash in you find even better than buying BRK for $455.1. Then you buy those puts back for e.g. 1/2 price (lower time value then) and keep the other 1/2 of the premium + the interest until then. Done. Also not too shabby.

Thank you, Jim!
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