Out of my Berkshire Hathaway B Option…And Back in!

On February 27th, last Thursday, I posted that I bought options in four companies. One of them was Berkshire Hathaway B (BRK/B). I bought 1 BRK/B 12/19/25 $500 C @ $42. In the few days since I purchased this Call the stock popped. I own the Call with an Expiration Date of December 19th but with today’s market environment I decided to lock in the profit I have. I just sold this Call for a premium of $53

2/27/25 – Buy to Open 1 BRK/B 12/19/25 $500.00 C @ $42.00

3/3/25 – Sell to Close 1 BRK/B 12/19/25 $500.00 C @ $53.00

Profit +$1100

I held this position for two trading days and I locked in a $1100 profit. This is a Return on Investment (ROI) of 26%.

I sold this position because the stock has been on a crazy run and the RSI is peaking up near 74. I felt there was a pullback coming. As soon as I sold this option the stock started moving down. As I am writing the stock is going down fast. Also, as I’m writing the stock moved down from $516 to $511. I decided this might be a good time to get back back in. I looked at the option chain for something I liked. I liked the Sept 19th $510 Call. It was selling at $36.50 but I decided to put in a low offer. I placed an order to buy 1 BRK/B 9/19/25 $510 C at $35. This $35 was a lot lower than where it was at, $36.50, but I figured I would take a shot at getting it cheap. As I’m writing I was filled at the $35. I’m very happy with this position and the price I paid. The stock stopped moving down and is now moving horizontally but slightly up. I think this position will be another winner. However, it might take a little longer than two days!

Buy to Open 1 BRK/B 9/19/25 $510.00 C @ $35.00 (Delta .61)

 

Successful trading,

Steve

The Options Coach