No. of Recommendations: 0
Of course it's a separate trade. But it may also be a single investment.
Gotcha. It's a matter of terminology.
Even though I've been doing DITM LEAPS since 2017 I still don't have a 100% grasp on the strategy. 99.9% of options strategies are completely something else so my mind keeps slipping into the groove of other option types.
It's difficult to internalize a strategy that's only 0.1% of all strategies.
Thanks for putting me back on track.
The suggestion of here of rolling out (and maybe up) has nothing to do with "repair strategies". It's simply part of the mechanics of doing this trade, since you can't buy call options with expiry dates more than a couple of years in the future. If you want leveraged Berkshire as a long term hold mechanism, you have to roll every couple of years, just something for your "to do" list like pruning your roses or getting your brakes checked.
I just looked and the 13 BRK-B DITMs I've done averaged 4.25% implied interest rate.
From 2.40% to 6.88%. The last one closed on 1/2/2024, when the P/B got up to 1.55.
With BRK-B at 383.20. Sold it at 150, now is 238.
Last time I checked, on 3/2/2025, BRK was 513.83. Today it's 498.92.
The lowest rate was 6.06%, for the 1/16/2026 250 call. Breakeven: 526.45
P/B was too high so I didn't buy it.
