Although I believed $Berkshire-To The Moon - Tiger Brokers Online Investing Community - To The Moon

Although I believed $Berkshire Hathaway(BRK.B)$ would bounce up after Earnings Weekend, breaking $500 was a surprise to me! If you don't have much capital to deploy, buying 1 share last Friday would net you ~$25.

Buying a naked call option or selling a put option are two ways to earn more money, but they either require a significant amount of capital (relative to buying 1 share), or they're risky, or both!

What I did instead was buy a vertical. A vertical call is when you buy an option at a certain strike price while simultaneously selling another option with the same expiry at a more out-of-money strike price. I entered this $BRK.B VERTICAL 250228 CALL 482.5/CALL 485.0$ last Friday at net ~$112 and sold it yesterday at net $200. if I had conviction that the price will stay above $485 till the end of this week, I could hold on to them till expiry for the maximum net return of $250 (the difference between the strike prices).

If you have more capital and more risk tolerance, you could open verticals with a wider strike gap. Thankfully with Tiger, the amount of capital you have doesn't restrict the types of trades you can do [Love you]

Modified in.02-25

Share your positions with us! This is a column where you can find the winning trades of our fellow tigers. There probably are a few potential opportunities that you may have overlooked.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

PeteLeacock
02-25
PeteLeacock
Great strategy! Love the insight!

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This is a column where you can find the winning trades of our fellow tigers. There probably are a few potential opportunities that you may have overlooked.","image":"https://community-static.tradeup.com/news/14c89d9656aedb9a4698e7996c575947"}],"images":[{"img":"https://community-static.tradeup.com/news/224548a16eb6c1721074403c3bbdb454","width":"972","height":"1630"},{"img":"https://community-static.tradeup.com/news/b8b9b132912ba70e86bd2735ab8ad7f8","width":"324","height":"543"}],"coverImages":[{"img":"https://community-static.tradeup.com/news/224548a16eb6c1721074403c3bbdb454","width":"972","height":"1630"}],"html":"<html><head></head><body><p>Although I believed&nbsp;<a href=\"https://ttm.financial/S/BRK.B\">$Berkshire Hathaway(BRK.B)$</a> would bounce up after Earnings Weekend, breaking $500 was a surprise to me! If you don't have much capital to deploy, buying 1 share last Friday would net you ~$25.</p>\n<p>Buying a naked call option or selling a put option are two ways to earn more money, but they either require a significant amount of capital (relative to buying 1 share), or they're risky, or both!</p>\n<p>What I did instead was buy a vertical. A vertical call is when you buy an option at a certain strike price while simultaneously selling another option with the same expiry at a more out-of-money strike price. I entered this&nbsp;<a href=\"https://ttm.financial/OPT/BRK.B 20250228 482.5 CALL SELL 1 | BRK.B 20250228 485.0 CALL BUY 1\">$BRK.B VERTICAL 250228 CALL 482.5/CALL 485.0$</a> last Friday at net ~$112 and sold it yesterday at net $200. if I had conviction that the price will stay above $485 till the end of this week, I could hold on to them till expiry for the maximum net return of $250 (the difference between the strike prices).</p>\n<p>If you have more capital and more risk tolerance, you could open verticals with a wider strike gap. Thankfully with Tiger, the amount of capital you have doesn't restrict the types of trades you can do <span>[Love&nbsp;you]&nbsp;</span>&nbsp;</p><img src=\"https://community-static.tradeup.com/news/224548a16eb6c1721074403c3bbdb454\" tg-width=\"972\" tg-height=\"1630\"><img src=\"https://community-static.tradeup.com/news/b8b9b132912ba70e86bd2735ab8ad7f8\" tg-width=\"324\" tg-height=\"543\"></body></html>","htmlText":"<html><head></head><body><p>Although I believed&nbsp;<a href=\"https://ttm.financial/S/BRK.B\">$Berkshire Hathaway(BRK.B)$</a> would bounce up after Earnings Weekend, breaking $500 was a surprise to me! If you don't have much capital to deploy, buying 1 share last Friday would net you ~$25.</p>\n<p>Buying a naked call option or selling a put option are two ways to earn more money, but they either require a significant amount of capital (relative to buying 1 share), or they're risky, or both!</p>\n<p>What I did instead was buy a vertical. A vertical call is when you buy an option at a certain strike price while simultaneously selling another option with the same expiry at a more out-of-money strike price. I entered this&nbsp;<a href=\"https://ttm.financial/OPT/BRK.B 20250228 482.5 CALL SELL 1 | BRK.B 20250228 485.0 CALL BUY 1\">$BRK.B VERTICAL 250228 CALL 482.5/CALL 485.0$</a> last Friday at net ~$112 and sold it yesterday at net $200. if I had conviction that the price will stay above $485 till the end of this week, I could hold on to them till expiry for the maximum net return of $250 (the difference between the strike prices).</p>\n<p>If you have more capital and more risk tolerance, you could open verticals with a wider strike gap. Thankfully with Tiger, the amount of capital you have doesn't restrict the types of trades you can do <span>[Love&nbsp;you]&nbsp;</span>&nbsp;</p><img src=\"https://community-static.tradeup.com/news/224548a16eb6c1721074403c3bbdb454\" tg-width=\"972\" tg-height=\"1630\"><img src=\"https://community-static.tradeup.com/news/b8b9b132912ba70e86bd2735ab8ad7f8\" tg-width=\"324\" tg-height=\"543\"></body></html>","text":"Although I believed $Berkshire Hathaway(BRK.B)$ would bounce up after Earnings Weekend, breaking $500 was a surprise to me! If you don't have much capital to deploy, buying 1 share last Friday would net you ~$25. Buying a naked call option or selling a put option are two ways to earn more money, but they either require a significant amount of capital (relative to buying 1 share), or they're risky, or both! What I did instead was buy a vertical. A vertical call is when you buy an option at a certain strike price while simultaneously selling another option with the same expiry at a more out-of-money strike price. I entered this $BRK.B VERTICAL 250228 CALL 482.5/CALL 485.0$ last Friday at net ~$112 and sold it yesterday at net $200. if I had conviction that the price will stay above $485 till the end of this week, I could hold on to them till expiry for the maximum net return of $250 (the difference between the strike prices). If you have more capital and more risk tolerance, you could open verticals with a wider strike gap. 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Love the insight! [Love]","text":"Great strategy! Love the insight! [Love]","html":"Great strategy! Love the insight! [Love]","likeSize":1,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/407310891696816"}