Monday, May 10, 2010

Buy BRKB (sell puts)

Buy BRKB via selling Jun 60 puts BRKB@77.7. Stock market has a massive relief rally at the open. Berkshire Hathaway puts showing 52% implied volatility, even as VIX collapses on the rally. One way of thinking of selling puts is being paid to place a bid on a stock. Margin requirements and draw downs are factors to be considered. ThinkorSwim software indicates 88%+ chance of puts expiring worthless.

Long BRKB, GLD, SPY, TLT

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