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Tuesday, August 4, 2009

What's the definition of a bargain?

How about 300%?

Wouldn't it be nice if someone touted Berkshire Hathaway as a "bargain" just two weeks ago? The A stock was less than 92,000 and yesterday, it closed at $ 100,000 which is why I touted it here, along with the banks, which were supposedly then rolling over:

Look at the big Berkshire, the A's, sitting at 91,750. Then look at the little Berkshire, the B's, sitting at 2975. The spread should be 30 to 1, but the B's are at a 2.8% discount. It makes me think that the Sept 3,000 call on the B's at $100 are a bargain!

What happened?

Just a monster move in the banks, and a 300% move in the Berkshire options which were bid nicely over 300!

A 300% move.

Playing Berkshire Hathaway.

That's the definition of bargain!

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