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No. of Recommendations: 6
If you really want to get started in options; why not buy some BRK options that would increase your leverage (and return)...

Not such a bad idea. The timing is good right now.
Berkshire is cheap, not that much else is, and option premiums are fairly low.

Plus, depending on definitions and jurisdiction, you don't need a margin account to own long call options.
Once purchased, they can not create any liability.
They're valid for many types of registered retirement accounts.

For someone really wanting to gamble and risk losing all they wager, I think even higher strike long dated Berkshire calls look surprisingly attractive.
For example, the $190 June 2022 ones cost around $24, breakeven $214 per B or $321000 per share.
The stock price can do anything, but it's *probably* going to be a lot higher two years from now.
These contracts seem to have a very good chance of ending value being 2-3 times your cost.
(that would require ending prices in the $357000-$393000 range)
Imagine book per share rises only 8% total from 2020-Q1 to 2021-Q2 (a very bad outcome), then 9% in the subsequent year.
That would put book per share at precisely $270k in mid 2022. That notional $357k-$393k target range would then be 1.32 to 1.46 times book.

Jim
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