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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: Mark   😊 😞
Number: of 21939 
Subject: Re: Waiting for Godown
Date: 07/19/24 12:02 AM
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The reason I would close them is that it very cheap to do so after a sudden increase in the stock price, and if the stock falls back I can write the same put again.

1. It may be cheap to do so, but it still costs you some money. And since the stock went up so much, it's almost all time premium you are buying.
2. Yes, you can write the same put again, But because of the elapsed time (between the stock having gone way up, and then falling back down again), you will receive less time premium the second time around. And besides, you CAN sell the same put again WITHOUT buying back the old one! I just looked at the history of a particular put (not BRKB) I sold in Sep '22, it is a Jan '25 put, and I sold some in Sep '22 ($21.75 each), sold some more in Nov '22 ($20.80 each), and twice more in Dec '22 (first at $22.55 each, and then after a big drop at $26.95 each). Today those puts are each trading at $0.25, and I still can't think of any reason to buy them back. Of course, unless I want to book the capital gain in '24 instead of in '25 when they will very likely expire worthless. If I want the gain in '24, I would buy them back in December.
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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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