Fairfax’s Zenith acquisition fuels hope on insurance prices
Fairfax’s Zenith acquisition fuels hope on insurance prices
Another naked option opportunity maybe for me? We’ll see…
My BNI naked option ordeal
Burlington shareholders approve sale to Berkshire
I wrote 10 contracts of BNI strike 95 puts ending this month at 0.30. Total premium collected minus commission was $280 but I think I had to have $19,000 cash in my account which works out to about 20% of the strike (95 x 100 shares x 10 contracts). I had a margin call for the first time!
Oddly enough it went up to 0.45 at one time meaning I could have collected more money but my mind starts wondering..”Did I make the right trade? What am I not seeing?” This trade should be a no brainer but when leverage is involved, you start to doubt yourself.
Today’s close shows that it’s only worth 5 cents but I bought it back at 10 cents being the novice that I am to close it. I just wanted it over and done with. Reading the message boards, it indicated BNI shareholders could elect to convert to Bershire shares instead of $100 cash and the options would be converted as well. Once the options turns to Berkshire, there would be another week before expiry and the stock could go lower so why take the chance. Total profit $160 using $19,000. 10% annual return (160/19000 x 12 months). Not enough for the pain endured. Maybe I’ll venture into covered calls.
DivX’s Very Low Enterprise Value Should Interest Investors
Steak n Shake posts 4Q profit; plans name change
Steak n Shake posts 4th-qtr profit; plans corporate name change to Biglari Holdings
Biglari Holdings! Chairman Sardar Biglari has a big ego then and a lot to live up to.
