Subject: Options on BRK/B to get 2.5% in 2 months
I have been looking at options on berkshire for a long time. Nowadays I belive the stock is fairly valued or even cheap.
I came to this conclusion based on the new buyback that has been initiated, the low book value compared with the book value of the last 3 years.
Based on that I started a position selling puts on BRK/B strike 470 expiration Jun 2026.
Now its trading @ 12.4.
If it gets executed you are buying BRK/B @ 457.6 and if it not gets executed you are getting a 2.5% on less than 2 month.
Not a bad strategy ! Am I missing something ? Comments of the more expert people on the board are more than welcome.