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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 21943 
Subject: Re: Check Capital Management BRK Options Stragegies
Date: 10/18/23 5:21 AM
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if a fund and its followers are all offering illiquid brkb calls

I'm not sure why you find them so illiquid?
It's the bid/ask that matters, and for big traders the depth at that bid, not the trading volume.

I find Berkshire options pretty easy to trade even in pretty large quantities, and the gaps are pretty narrow for the strikes that are somewhat near the money where one would likely be writing calls.

As a random example, the March $370 calls have a bid/ask gap of 25 cents these days. (it's a call I wrote)
You could probably sell those for 5 or 10 cents above the bid using a limit, which is only 2.5 to 7.5 cents off the midpoint, or 0.01% to 0.02% of the stock price.
Even hitting the bid 12.5 cents below the midpoint, that's a gap loss of only 0.04% of the stock price.

These aren't obscure small-cap options where the bid moves away from you when you get anywhere near it. You can probably hit the bid all day if you like.

Whether writing Berkshire calls is a worthwhile way to make a buck is an entirely different question.
But I don't see any insurmountable problem in terms of market depth unless maybe if you're trading well over a hundred million worth of notional value in a day.

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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