Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I've never heard of anyone discuss doing a collar on BRK. What about selling a Jan 2015 call at a $120 strike for $3.25 and buying a $80 put for $3.40. These are based on the bid/asks (buy at the ask and sell at the bid). Say you can get them for the same price. You give up upside over $120 ($180,000 an A) or another 14% upside, in order to receive protection on the downside in the event of a 25%+ drop.

Obivously you're probably giving up more than you are getting here, but perhaps not a bad strategy - some type of collar - if someone had 100% of their net worth in BRK.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.