No. of Recommendations: 0
I started getting comfortable with the idea of more money in Berkshire instead of fixed income. I wanted a 3.5% discount from last Monday's trading point to make the move, so I sold some puts to get a better price.
Since then, Berkshire is up almost 5.5%. My earliest expiring puts (June 2026) have returned 50%, and the latest (January 2026) have returned 36%. The gain is nice, but it places
The simplest thing I can do is just wait, and consider the return on the puts an extra on top of the cash being earned in my money market. Keeping if if Berkshire stays high, or turning into Berkshire stock if it gets low (and put). That was my original intent.
But I could instead buy pack my puts, to close out the contract. I was never expecting the puts to change price so quickly. But I would keep the money earned in my money market, and put an order to sell the puts again when the price gets closer to where I'd want to buy Berkshire.
No. of Recommendations: 3
But I could instead buy pack my puts, to close out the contract.
FWIW, I chose to close my similar but likely shorter dated contracts than yours. I held for five days total and was able to collect nearly 60% of the premium in less than 10% of the total time of the contract. With the remaining premium the implied interest rate was barely 2% which didn't seem to be worth the wait. I'm content to wait for another opportunity to do the same thing again.
I wish I would have done more but work and life were getting in the way a bit that day as i recall. One of the hazards of not simply going the buy and hold route.
Jeff
No. of Recommendations: 0
But I could instead buy pack my puts, to close out the contract.
FWIW, I chose to close my similar but likely shorter dated contracts than yours. I held for five days total and was able to collect nearly 60% of the premium in less than 10% of the total time of the contract. With the remaining premium the implied interest rate was barely 2% which didn't seem to be worth the wait. I'm content to wait for another opportunity to do the same thing again.
I wish I would have done more but work and life were getting in the way a bit that day as I recall. One of the hazards of not simply going the buy and hold route.
Jeff
