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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: Engr27   😊 😞
Number: of 16626 
Subject: Re: Getting complicated
Date: 08/13/2025 9:57 AM
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Wild suggestion:

Write a cash-backed put option. For a strange example, consider the June 2026 $490 strike, current bid is $41.85, also last trade. The current stock price is about $456.50.


The stock price now is ~470 so I am going to compare the June '26 $500 put with the buy-write of the $500 call.

$500 Put: ~$39. Net cost = 500 - 39 = $461

$500 Call: ~25. Net cost = 470 - 25 = $445

If the stock price is below $500 at expiration, you own the stock at the above net prices.

If the stock is above $500 at expiration, the Put earns you a bit more premium plus interest on the $461.
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