boilermaker75

Wrote some SUBX March 18 expiration 83- and 84-strike puts.

OK, thanks, but I have known individuals who have done that.

I actually almost did the same a year ago. Our mortgage was almost paid off, we only owed about $5k. (Actually the mortgage was paid off and we took out a loan about 10 years ago so we could loan the money to our daughter to buy a condo in California. We then gifted our daughter the max each year to essentially pay off her loan.) I was going to put it all in BRK. If I had done that, I would already be up about 40%

What about BRKB? Edit: Sorry, LOL, I missed your first line. That is what I would do dump it all in BRK.

Any one who lists their name as Dr. Parik Patel, BA, CFA, ACCA Esq. (drpatel.eth) tells me all I need to know about the individual.

I wrote some BABA OTM March 18 expiration puts this morning and some BRKB March 18 expiration 325-strike puts.

When I started the discussion I had quoted the effective rate, but I am not sure if the 3.5 % refers to base or effective. I'll let you know when I get the confirmation letter. In any event, I will be calling the person assigned to my account, as Dinar has suggested, to further "improve" the rate.

Thanks @Munger_Disciple, I am going to follow Dinar's suggestion and talk with the person assigned to my account as soon as possible. I will point out the multiple other accounts at Schwab and additional margin I would be willing to take on.

I do, but he was out-of-town for two weeks so I spoke with someone else. Great suggestion. I'll come him when he is back in the office. Thanks.

Thanks Dinar. I make about 250 option trades a year. This account is low 7 figures and my margin debt is $40k. I should probably call back and argue for a lower rate? Edit: I know the rate is going up as you stated, but if I had 0.98% I would have a higher margin debt.

The only reason I was in this was to play the risk arbitrage and why I want to get out. I made some money even if I outright sold my AJRD at a slight loss because I wrote puts a few times that expired. I guess I am greedy going with the covered calls but the premiums are good!

Wrote 315-strike and 320-strike March 18 expiration puts on BRKB. Wrote 60-strike and 65-strike April 14 puts on MSGE.

I have written 40-strike covered calls on my small AJRD position that I was put to at 40 on a risk arbitrage play.

I just negotiated with Schwab and they offered me a margin rate of 3.5%. It sounds like others have been able to negotiate a better rate? They didn't give me a lower rate because I only have $40k on margin and I told them I did not know if I would be increasing that.

Those look like fun!

wrote 51-strike, March 18 expiration OXY puts for $0.56 per share.

That was an undertaking! Looking great! I loved that Firebird and wish I still had it. Eventually gave it to my brother and I think he eventually sold it. It was great back then because you could do all the work on the car. A lot of us kids would work on cars with our dads. Today that doesn't happen. I have been teaching electrical engineering since 1984. I have noticed a reduction in ability in the lab. I am thinking it is because no one grows up anymore working on cars, or building Heathkits.

wrote OXY 53-strike, March 11 expiration puts.

Wrote some MSGE 70-strike March 18 puts for $0.90 per share.

Won't this result in the US and Western Europe pumping in money to rebuild Ukraine? Won't Ukraine then be such a close partner they become part of the EU and maybe a NATO member?

Yes $10k per acre sounds high. I guess if you were the actual farmer you would be making a higher yield. You probably do better taking on more of the risk. I have a colleague who is doing research on photovoltaics mixed into crop fields. https://www.purdue.edu/newsroom/releases/2019/Q4/local-sunshine-meets-local-needs-with-global-impact-key-is-cogenerating-electricity-alongside-farming.html

The last year the farm contract was for $265 per acre and there was a $20 per acre bonus received because of the yield/price obtained for the crops. The farm manager says the land is worth $10k per acre. Yield is only 2.85%, but over the last 30 years the land appreciation had been 6% per year. Not great, but not bad, as an investment. If that was all there was too it I would suggest selling and get rid of the headache of those six 1/12 owners. But the land is along Interstate 70 right by an exit. Industry has been going in in the area, like Nucor, and it is less than 50 miles to downtown Indianapolis. In fact some of the land was annexed to put in a road for Nucor. So we will probably hold on when inherited. We also could buy out all the other tenants to prevent a judicial sale.

gfp, Grafter, CorpRaider, Thanks for all your comments, very helpful. This farm is just east of Crawfordsville, IN, so less than 50 miles from GFP’s! It has been in my wife’s family for around 150 years. It was jointly owned by my wife’s mother and her brother. Now owned by my wife’s mother and aunt after her uncle died. My wife will own 1/4, as will her sister. There are 6 cousins on the other side with each owning 1/12. One of the cousins is pushing for this LLC. My wife went into the LLC meeting with the farm attorney and accountant thinking the goal was to keep it as a family farm even though no one in the family has farmed it since 1954. She felt that this one cousin was turning it into two sides, the sisters versus the cousins and he did not want the sisters to ever be able to get control. If one of the cousins decided to sell only the other five cousins would be allowed to buy, 10 year purchase at Fed Funds rate (he actually was pushing for 20 years), voting for anything required >67% to pass, etc. I’m not sure what the rule is if my wife wanted to sell and none of the other partners wanted to buy. I will find out more when we get the draft document. I’m thinking we should just leave it as is rather than rush into this LLC. Thanks, Mike

thanks @CorpRaider

Does anyone have experience with turning a farm owned my multiple family members into an LLC? We spoke with a real estate attorney yesterday and we were not happy with the suggestions. For example, if you want to sell your piece it would be set up where the other members would have 10 years, or even 20 years, to buy you out. I would prefer if some other member wanted to buy my piece they have to come up with all the cash now and I was told it is not done that way. Any suggestions to where I could go to educate myself on what options there are? TIA, Mike