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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: iwealthy   😊 😞
Number: of 21941 
Subject: Re: brk, sold cash secured puts on Friday
Date: 03/08/25 11:33 AM
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I haven't seen much mention of collars here during periods like this where the stock may be overvalued and the market is in a state of rather extreme uncertainty. You own the underlying, buy a put and sell a call. You can also manipulate this such that you only owe long term capital gains should the trade work out and you don't have to deal with the tax implications of selling your stock.

For example, you own BRK.B right now, current price $495/share. You can buy the March '26 $490 put for $27 (ish) and sell the March '26 $540 call for maybe slightly more than that. Ultimately, you can put that trade on for a small credit and you can still capture up to $45 or 9.1% worth of upside with max 1% downside should the market crash.

The is a -very- slight risk that BRK rallies extremely hard and your short calls are exercised.
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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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