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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: Engr27   😊 😞
Number: of 16624 
Subject: Re: Getting complicated
Date: 08/13/2025 12:59 PM
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Buy-write means you're using up your cash to pay for the stock, so you don't get interest on that.

Yeah, you're right.

What my calculations omitted was that you get the interest on your cash even if the stock is eventually put to you.

So, at the same strikes, the cash-secured put and the buy-write call have similar payoffs, as expected.
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