I am very fortunate to be holding a decent amount of BRK; I was able to pick up a few shares years ago and have held them through the recent run-up. They now comprise an outsized portion of my portfolio – I have some large expenses coming due next year and am evaluating strategies. I am considering buying some of the Jun 2025 puts such as Jun 2025 400 to lock in my gains. I'd like to protect against a huge fall – not a smaller movement.
Thoughts on other strategies here?
Options Strategy to Monetize Large Position of BRK?
byu/Awkward_Till5997 inoptions
Posted by Awkward_Till5997
2 Comments
Berkshire Hathaway is so large & diversified it’s almost a proxy for the market/economy as a whole, and has a beta of .90.
Are you concerned about an impact to BRK specifically independent of the market/economy? My sense is that BRK is not likely to see a significant drop absent a general market decline, and a more efficient dollar-for-dollar hedge might be puts on $SPX or $NDX.
EDIT: Also, absent specific tax consequences, if you have a known reasonably near-term expense you intend to sell these shares to pay for…maybe just sell them and take the 5% return on cash deposits in the meanwhile.
Fortunate? I mean I’m assuming it’s B stock right? I mean, sure you outperformed the market but there were definitely other opportunities out of the last couple crashes?
Ultimately, I don’t think you understand the holding company you own stock in. How much movement are you expecting BRK to move to the downside? Because this isn’t that stock? You’d be better to hedge against something a bit more inverse to BRKs holdings like QQQ which will move a hell of a lot more.