Jim, does it ever make sense to sell In The Money Puts on BRKB?
If you want to buy the stock, but it’s not quiiiite cheap enough for you.
You definitely won’t buy at the current price, but definitely would buy at a slightly better one, and you’re willing to commit to that–
you’re willing to take a small cash bonus if it doesn’t hit your target price.
A fairly rare situation?
Of course, the relative chances of the outcomes, and the cash bonus, depend on the strike price you pick.
If it’s a very high strike price you’re almost certainly going to get the stock, at a price that’s only a teeny bit better than the current one.
If it’s a strike price near the current price, it’s a toss-up whether you’ll get the stock, but the cash bonus might be a fairly decent rate of return.