No. of Recommendations: 0
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.
I've used this logic before and sometimes it works. But sometimes it doesn't ... because usually when those "other opportunities" suddenly arise, it's because of a brief downdraft. And most often, that brief downdraft will also affect Berkshire, so if it drops to 470 or 465 during that brief moment, suddenly those 490 strike options can't be bought back at 1/2 the price, but may instead cost way more than that, perhaps even more than the original selling (to open) price.
