The Motley Fool Discussion Boards
Stocks B / Berkshire Hathaway
|Subject: Re: BRK Leaps:||Date: 11/10/2012 8:16 AM|
|Author: mungofitch||Number: 195719 of 224547|
Buying calls has a risk I am not sure is clear thus far in this thread:
Berkshire's stock price could be cut in half, along with the rest of
the market, and stay there past your expiration date, only to recover
fully and a whole lot more at some point down the line. Your call options: Worthless.
Nice post. But I wouldn't consider this specific point a big risk.
My $45 BRK call options will expire worthless? It could happen, but it seems unlikely in the extreme.
Even an ending price under $75 seems rather unlikely, though it's in the realm of possibility.
I buy call options with the intent of having the money (if need be) to exercise
them at expiry or an