No. of Recommendations: 10
Selling puts is very similar to covered calls, even though they may feel different psychologically. The put premiums are smaller than the call premiums now, but puts come out very similar to covered calls after you figure the interest on the cash.
I've been selling puts with strike prices of 1.4 times BRKB's book value for what seems like forever now, with a range of expirations, and they keep expiring worthless. But the premiums added to the 3.6% interest on the cash is pretty good, while waiting for BRK to come down again.
As Charlie says, be very careful if you use leverage, it's how smart people go broke. :-)
