May 31 , I am going to open to open a new position on BRK-B.
At this price Berkshire is undervalued and trading at discount to its fair value .
Morningstar fair value estimate is $240 (18% off).
Open Interest Chart
The first thing I note are these significant ITM Puts @200 (bearish sign ) and OTM calls @200 (resistance sign).
I am going to stay under 1 STD , and I remember new readers, I am available to own the share in case of assignment.
Option Volume Chart
There is good premium around 192.5 and it is under 1STD.
Option Max Pain Chart
Max Pain @200
Conclusion: sold 1 CSP, strike [email protected], expiry June 7. Weekly return 0.28%, AROI 14.6%.