Berkshire Hathaway : Cash Secured Puts

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 192.5@0.54, expiry June 7. Weekly return 0.28%, AROI 14.6%.

Share on your social this article!