Invest in Berkshire Hathaway at $340 and Secure 1.6% Returns with Options Strategy

Avatar photo

“`html

Investors interested in purchasing Berkshire Hathaway Inc. (BRK.B) stock, currently priced at $508.05 per share, may consider selling put options as an alternative investment strategy. A notable option is the January 2028 put at the $340 strike, with a bid of $5.55, offering a 1.6% return against the $340 commitment, equating to a 0.8% annualized rate of return.

Should Berkshire Hathaway’s shares decline by 33.1%, the put contract could be exercised, resulting in an effective cost basis of $334.45 per share. The trailing twelve month volatility for BRK.B is calculated to be 19%, providing a context for assessing the risks associated with this investment strategy.

“`

The free Daily Market Overview 250k traders and investors are reading

Read Now