Buffett, a share buyback and over reserved - roll the puts

2021年4月15日

I sell and roll a BAC put vertical monthly. This has been a very good strategy for the options trader.

The company has a large share buy back in place.

Berkshire Hathaway has been given permission to expand to 15% of the common stock.

The company is over reserved and likely with earning tomorrow will report the actual amount of reserves released to the bottom line as earnings.

I sell cash secured put verticals on the stock and routinely roll these forward. Likely the day after tomorrow I will be able to buy in the 40/37 strike put vertical and sell the next months options keeping some cash and rolling the risk forward by one month.

As usual the cash goes into GGN or BPT. One is an oil and gas portfolio. The other is an oil trust.

I like my chances.

2021年5月13日

ノート

Sold the cash secured credit 26 June 42/39 put vertical this AM for $130 on the DOW drop this week.
Looks like the world did not end.

2021年6月25日

ノート

rolled into the 41/38 credit put vertical. net credit exactly $1.00. Continued buyback of common. Buffett shares held as a backstop. Large reserves released to earnings. Very large sharebuyback instituted. Lose $2 or gain $1. Logical put vetical pricing. I love this trade and roll forward into earnings date and ex dividend date as well. A core 2% of my account value risk position.