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 Jim´s suggestion by writing Jan´27 $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!
