Bold Prediction - FWIW

Looks like $350 for BRK’B is this cycle’s high, and I am still bit biased on the downside; Yet I have sold few puts for Nov $260, even though I am expecting we might see $250, but looks like $250 may be the low for the year. If those puts get assigned I will have to manage. Probably rotate them for long-term $200 Puts. There are some interesting option plays are available, for ex: in a retirement account I have a covered-call for Jan $280, where either I get 22.5% annualized return or my cost basis will be $260.


Thanks for the heads up on the options - those are some decent returns!

Why $280? If you’re biased toward the downside wouldn’t something like the JAN $270c or even JAN $260c be better?

Certainly. If you go deeper in the money, your annualized return will go down, but you also decrease your net cost basis. You can play few scenario’s . I normally like spreads, to reduce my capital investment, but the bid-ask is so wide trying to structure the spread didn’t work. Hence I bought the shares and wrote the call. But those who are patient can try the spread.