Bull Trap Today

Deep in the money call LEAPS options (expiring 1/2025) have worked well for many on the Berkshire board as BRK’s earnings and history of bouncing back over time. Of course, they employ more leverage than simply buying the stock itself. Please do not ask me to explain beyond this as there are great books and videos, but it has been a reasonable way to add a bit of return with reasonable risk and using mild leverage.

Most recently I bought some a BRKB call option which expires in Jan. 2025 in September 2022 with a strike price of 150 for $13,800. I can sell the call or purchase 100 shares for $15,000 yet not until expiration. My bet is that BRKB will be substantially above my break even if $288 in 26 months. Just sharing my 2 cents on LEAPS that pass my taste test in moderation. Good luck!

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