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: Engr27   😊 😞
Number: of 16626 
Subject: More cash-secured put arithmetic
Date: 08/14/2025 2:15 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 1
In https://www.shrewdm.com/MB?pid=882213795 robm pointed out that with a cash-secured put you earn interest on the entire strike price, not just your backing cash.

So, if earning interest on $500 is good then earning interest on $700 must be really good.

Writing a $700 Jan '27 put will yield almost no time value -- it might even be negative.

However, at an interest rate of 3.6% / year you would earn about 5% for 17 months (til Jan '27). That's about $35 a share.

This put discussion was all in the context of wanting to own the stock. What is the downside of buying the stock via the $700 put, given the 5% discount?
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