Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A
Shrewd'm.com Merry shrewd investors
Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search BRK.A

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
Unthreaded | Threaded | Whole Thread (9) |
Author: Mark   😊 😞
Number: of 16625 
Subject: Re: More cash-secured put arithmetic
Date: 08/15/2025 5:25 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 1
Writing a $700 Jan '27 put will yield almost no time value -- it might even be negative.

I theory it can't be negative. Because if it were negative, it would be worth buying and immediately exercising the option (US equity options can be exercised at any time through expiry, European equity options can only be exercised at expiry). Thus, arbitrage would exist and that inefficiency would immediately disappear.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Unthreaded | Threaded | Whole Thread (9) |


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