Hello boilermaker75,
Could you please explain how this process works?
Thanks so much,
Buckeye
Buckeye,
As an example, at the close today you could write 242.50 strike March 5 expiration puts for about $0.80. Probably a much greater than 50% chance these would expire tomorrow and you would pocket the put premium. If near the close tomorrow BRKB was actually trading below 242.50, you could write the Oct 12 242.50 strike calls, probably for at least a couple of bucks.
There are times you will have to hold the BRKB position if the price falls too much. But it has always been safe holding BRKB till I can sell it for more than the price I was put to.
I also have acquired all the BRKB I am holding long-term this way. I was the put writing as a limit order.
Boiler
Hello Boilermaker,
Thank you for taking the time to respond, I appreciate the help! You had recommended 3 books earlier in this thread (pasted below). Is there any one of them that you would suggest starting with?
Thanks!
Buckeye
Three I would recommend
LEAPS by Harrison Roth
Options for the Stock Investor by James Bittman
McMillan on Options by Lawrence McMillan