Post #8446 by Mark on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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Instead of buying puts ... and have the time value losses associated with buying options, why not sell calls ... and have the time value gains accrue to you? If you really believe the stock will trend lower toward 370 over the next 18 months, then those calls would slowly lose value, and mostly end up at zero. Now, if you think the stock will trend lower toward 370 and continue substantially below 370, then the puts could end up being worth far more.

Plus, of course, if you sell options, you get the money in hand and it can earn interest for the duration. When you buy options, the money leaves your account and earns interest for the person who sold you the option.

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