...it could make sense to write some cash-backed puts at lowish strikes that give a price I'd be willing to pay...

In case anybody is interested, I did write some puts against BRK/B that would have given me entry price I'd be happy with.
But with today's price pop, those puts have been quite profitable, so I just closed them.

They might have allowed me to get the stock at a good price, or provide a cash return. Having close them, it's the latter. I made 49% of the maximum possible profit in 10% of the maximum possible elapsed time, so that's pretty good. I didn't bother to calculate the IRR, it would be some silly number.

The realized profit was the equivalent of $4.78 per B share that I committed to (conditionally) buy, in 16.5 calendar days. The stock price is up more than that, but of course I didn't actually have to buy any stock to get the profit...I kept earning interest on the capital.

Jim

Berkshire Hathaway FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.