No. of Recommendations: 1
I have another idea.
Suppose you are like me, who’s already 75% net-worth invested in brk.
One could sell 100 shares of Brk atm put with strike $500 and 1 year expiration, and pocket about $2000-2500 put premium. At the same time you put $50000k in Tbills earning 4%.
One year later, if Brk is higher than current price. You have earned 8% (2000+ 2000/50k). If Brk is lower, you will spend the 50k to buy Brk stocks. HOWEVER, you can sell these stocks immediately if you want - you will lose some money but since you already have a huge BrK existing holdings that has already appreciated a lot, it’s probably not a big deal to feel bad about. You can also keep the stock of course.
It could also be better to sell the two years put.
What u guys think?
