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 (1) |
Author: tedthedog ⎊  😊 😞
Number: of 22347 
Subject: OT: Sleep-tight option position on SPY
Date: 12/29/23 4:20 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 3

This is for the closet indexers on this board holding SPY.

Sell Jan 17 2025 strike 530 SPY call, bid 11.22 ask 12.71 mid 11.9
Buy Jan 17 2025 strike 425 SPY put, bid 11.65 ask 12.78 mid 12.25
Cost $35/contract, almost costless.

Discussion
Costless Collar: if you're happy to cap gains at a comfortable level then you can sell a covered call to finance a protective put.
This example caps gains at +12% and losses at -11%. Net cost is minimal.

Adjust to taste. Sleep tight.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to tedthedog here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,850 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 (1) |


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

Ticker or Board Name Author

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