Emotional 4% gap on Warren Buffett "leaving"

Keeping eye on possible 10-day option entry on 4% gap that is just irrational quick sell-off.

reasons for gap to fill up:
-nothing changes, Buffet was not making decisions single-handedly anyway and passing knowledge is his strong side, not the opposite
- he will remain chairman of the board
-honestly what do people expect? him trade until he´s 100 years old?
-Trump meanwhile has a complete meltdown on his tarrif policies not working, he hinted that easing is comming because basicly he has nowhere to got and got cornered. By extension this would bring uplift for all the stocks.

reasons to not fill up:
-any new idiotic policies by Trump that we can not predict

Trade active

I just opened:

BRK B May 512.5/500 Bull Put on AMEX

Note

Trade confirmation from Interactive Brokers:

BRK B 16May25 500 Put +1 356USD paid
BRK B 16May25 512.5 Put -1 748USD received

Max loss: 858 USD
Max profit: 392 USD

Not the best ratio, but I was little late on that trade.

FOMC survived.
Looks like first trade deal will be anounced today. And also trade talks between the U.S. and China are scheduled to take place in Geneva from May 9 to 12. This should keep us above 512.50

Note

Yesterday activity:

AAPL - Apple Inc. +0.63% / (28.12% of Portfolio)
AXP - American Express +2.69% / (16.84% of Portfolio)
BAC - Bank of America Corp. +1.64% / (11.19% of Portfolio)
KO - Coca Cola Co.-1.70% / (9.32% of Portfolio)
CVX - Chevron Corp. +0.92% / (6.43% of Portfolio)
OXY - Occidental Petroleum +6.23% / (4.89% of Portfolio)
MCO - Moody's Corp. +0.81% / (4.37% of Portfolio)
KHC - Kraft Heinz Co. +0.18% / (3.74% of Portfolio)

Most of the stocks in portfolio was slightly up. However (BRK-B) ended -0.96%

Not a good news, but we are still in the money. Now with China trade talks ahead, the sentiment should be neutral or up. I don´t really care about Friday. All focus is on trade talks wich will finish on Monday.

Note

The US is dropping its duties on most Chinese imports from 145% to 30%, while China is lowering its 125% tariff on US goods to 10%.

Apple +6.31%, American Express+ 5,06 %, Bank of America Corp +3,76 %

As of early 2025, the 3-month correlation between AAPL and BRK.B is approximately -0.46, indicating a moderate inverse relationship in their short-term price movements.

BRK.B seems to be glued to the price around my entry point. Neutral or upside micro-movements as expected. This should continue for the following 4 days.

Note

Despite the economic news around tarrifs BRK.B did not hold the price. Even though the stocks on their porfolio were up. Yesterday we fell -1.66%. Not a big move, but big enough in terms of this option contract which will expire on Friday.

I still believe we will not end the week on these levels, but rather come back to 507-512.

Trade closed manually

I just closed with +319 USD profit.

Note

Chose the take a profit before expiration. +319 USD

Cutting myself 23% of the max profit (392USD), but a win is a win. I was planing to be in a safe spot at this time, but the stock kept chopping around the entry point. Most of the time actually in the red numbers, so I am glad that on the last day it turned around and I could secure a good exit with no more risk.

See you in the next trade :-)

litwizard

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litwizard