In September, I sold covered calls against my position in Berkshire Hathaway. I almost felt sacrilegious for doing so; however, I sold the calls premised on “my hunch and hope … that the stock closes below 480 on 18 OCT…..” Well, BRK-B closed below the 480 strike on the 18th of October. Accordingly, I kept all of my shares and enjoyed collecting a five figure premium on the calls. I did get a little lucky. A few days after I sold my calls, Ajit Jain, vice chairman of insurance for Berkshire, sold about half of his long-held position in the company. I think that spooked some investors and temporarily took some wind out of the stock’s ascent. Thanks, Ajit!
With Love,
P. Gustav Mueller, author of The Present