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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" 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.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: mungofitch 🐝🐝🐝 GOLD
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Number: of 21937 
Subject: Re: OT: VZ Calls - very unusual today
Date: 01/23/24 11:01 AM
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This is usually explained by one of two things.

In your case, I think it's just because options change in percentage value very rapidly (but not dollar value) when they are transitioning from out-of-the-money to in-the money. For example, your $40 calls were out of the money yesterday but are in the money today.

When that isn't the reason, as with deep in the money calls, it's often the way the price is being presented to you. Often a given option contract might only trade a couple of times per month. In that case what you see is the price change since the last trade, which might have been a LONG time ago.

When that happens, a better way to track it is to have a glance at the midpoint of bid and ask. This is generally what is used by brokers at end of day to give daily or monthly statements. Check the current midpoint versus your most recent statement value and you are likely to find the price change is logical given the change in price of the stock.

If not one of those two explanations, then sometimes something big has happened with the company and the options are going wild.

Jim
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This community has written 21,448 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 · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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