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Stocks B / Berkshire Hathaway


Subject:  Iron Condor (revisited) Date:  8/9/2018  2:05 AM
Author:  DocEdRicketts Number:  238065 of 259456

I posted about the strategy of leveraging assets that are not paying cash, but are extremely valuable a bit ago, and received some very savvy advice. As in, the Iron Condor strategy might not be a low-risk way to juice the return off of a semi-permanent hold like Berkshire Hathaway. All the arguments I heard made a lot of sense. To paraphrase, the strategy, with 15+ years of history, uses an asset (like Berkshire Hathaway stock, or another asset that has durable value, but doesn't pay much cash; it can include anything of sustainable value that isn't easy to leverage off of) to provide collateral for an out-of-the-money put/call band above and below the S&P Futures index, by both buying and selling puts and calls (2 calls, 2 puts) both above and below the asset to create income around the asset. Possible losses are defined, and limited, by definition.

I have not pulled the trigger.

Does anywhere here, though, have a suggestion for a Motely Fool board that discusses this sort of thing daily? I posted to one board that seems to be inactive. I just want to further vet this idea with people that play in the arena on a daily, or at least regular, basis.

Many thanks for any suggestions.

I am just trying to do my due diligence to make sure I am not passing up an opportunity that actually doesn't have much risk, that could earn roughly 6% on top of the return I already expect for Berkshire.

If you know of a place on Motely Fool or elsewhere where I could further discuss this idea, please share. Obviously, it would need to be a discussion group that are options experts.

Many Thanks!

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