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- Manlobbi
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
No. of Recommendations: 2
We seem in vogue.... tech looking rocky.
Just imagine trading at 2X book for once ... it has been a long time
No. of Recommendations: 0
Bears are coming out of the woodwork with no March rate cut. Comedy
No. of Recommendations: 2
Bears are coming out of the woodwork with no March rate cut. Comedy
I picked up a couple of good (I hope!) deals today.
Yah, options are VOLATILE!! Couple days ago I sold the BRK Jun 400 call for 9.01, the next day it dropped to 7.07 -- I almost bought it back for 27% 1 day gain but didn't.
Today it hit 10.73, closed at 9.80.
No. of Recommendations: 8
Yah, options are VOLATILE!! Couple days ago I sold the BRK Jun 400 call for 9.01, the next day it dropped to 7.07 -- I almost bought it back for 27% 1 day gain but didn't.
Today it hit 10.73, closed at 9.80.
Maybe you're thinking about them wrong : )
I find it is most useful to think of an option contract as merely one WAY to own, or sell, the underlying stock. I always assume assignment.
A 1% move in the stock price is pretty trivial, and that would be a move of $3.80.
Your option contract price changed by less than $2, not much in the grand scheme of things.
Jim
No. of Recommendations: 5
I find it is most useful to think of an option contract as merely one WAY to own, or sell, the underlying stock. I always assume assignment.
Yes, I will be happy to sell BRK at 409.01 in June.
Your option contract price changed by less than $2, not much in the grand scheme of things.
I am still trying to get my head around understanding selling calls. It took quite some time for me to achieve a good intuitive understanding of buying DITM calls.
Problem with selling calls is the overwhelming chatter from people who think that covered calls are free money. That kinda drowns out the relatively few people who are serious.
The 27% one-day gain was great to see, but as you say it isn't anything to write home about. 27% on $7 is still only $2.
Thanks, Jim
No. of Recommendations: 6
Just imagine trading at 2X book for once ... it has been a long time
Hehe. Years ago (10? 15??) I remember reading discussions about price-to-book and thinking that 1.75 seemed a roughly fair value. And the long-run trend in that multiple should probably be upwards. And I haven't seen anything to change that opinion particularly. So I find it amusing to read all the discussions about the relative merits of 1.3x 1.4x or 1.5x book. Cheap or cheaper or really, really cheap? It's all good, and suggests holding a core position and some extra. To me, anyway. The rest is missing the forest for the trees*.
SA
* Granted, many of us here are probably "analyse the branches, never mind the trees" people :-)
