Friday, January 13, 2012

Buy BRKB (roll puts)

I add to BRKB longs via rolling my short puts, BRKB @77.3. I buy back short Jan 62.5 puts, sell Mar 67.5 puts. I am also short Feb 67.5 puts. My anecdotal observation is that BRKB puts tend to decay a bit earlier than index options. A narrow spread on the Mar puts encourages me to roll the position out instead of waiting until the Jan puts expire. Again, the reasoning is chart support and a stock buy back.

Long AMZN, BRKB, EEM, TBT
Net neutral SPY

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