Spotshooter1983

Buffett, a share buyback and over reserved - roll the puts

Long
NYSE:BAC   Bank of America Corporation
I sell and roll a BAC put vertical monthly. This has been a very good strategy for the options trader.

The company has a large share buy back in place.

Berkshire Hathaway has been given permission to expand to 15% of the common stock.

The company is over reserved and likely with earning tomorrow will report the actual amount of reserves released to the bottom line as earnings .

I sell cash secured put verticals on the stock and routinely roll these forward. Likely the day after tomorrow I will be able to buy in the 40 /37 strike put vertical and sell the next months options keeping some cash and rolling the risk forward by one month.

As usual the cash goes into GGN or BPT . One is an oil and gas portfolio. The other is an oil trust.

I like my chances.
Comment: Sold the cash secured credit 26 June 42/39 put vertical this AM for $130 on the DOW drop this week.
Looks like the world did not end.
Comment: rolled into the 41/38 credit put vertical. net credit exactly $1.00. Continued buyback of common. Buffett shares held as a backstop. Large reserves released to earnings. Very large sharebuyback instituted. Lose $2 or gain $1. Logical put vetical pricing. I love this trade and roll forward into earnings date and ex dividend date as well. A core 2% of my account value risk position.

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