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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤
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Author: tedthedog ✧🐝⎊  😊 😞
Number: of 15062 
Subject: Re: BOA
Date: 04/10/2023 8:50 AM
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No. of Recommendations: 1
Just a thought, FWIW:

Sell May 19 2023 puts, strike 24 (roughly 14% OTM), bid 0.35 ask 0.37
(0.35/(24-0.35))*365/39 = 0.1385, or 13.85% roughly annualized.

Two outcomes:
(1) You make 13.85% or so annualized on this trade, and perhaps on future trades if things continue roughly the same. Not bad in present climate.
(2) You end up owning BAC at a lower price point. Could sell it and keep writing puts, presumably it's not about to go bust. Or if assigned, you could keep the stock that was bought at a discount.

The adage is "Only sell puts on stocks you wouldn't mind owning".
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