Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (16) |
Author: Mark ☼  😊 😞
Number: of 22353 
Subject: Re: Waiting for Godown
Date: 07/19/24 12:02 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 0
The reason I would close them is that it very cheap to do so after a sudden increase in the stock price, and if the stock falls back I can write the same put again.

1. It may be cheap to do so, but it still costs you some money. And since the stock went up so much, it's almost all time premium you are buying.
2. Yes, you can write the same put again, But because of the elapsed time (between the stock having gone way up, and then falling back down again), you will receive less time premium the second time around. And besides, you CAN sell the same put again WITHOUT buying back the old one! I just looked at the history of a particular put (not BRKB) I sold in Sep '22, it is a Jan '25 put, and I sold some in Sep '22 ($21.75 each), sold some more in Nov '22 ($20.80 each), and twice more in Dec '22 (first at $22.55 each, and then after a big drop at $26.95 each). Today those puts are each trading at $0.25, and I still can't think of any reason to buy them back. Of course, unless I want to book the capital gain in '24 instead of in '25 when they will very likely expire worthless. If I want the gain in '24, I would buy them back in December.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Mark here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,861 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (16) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community