This is the 4th put sale by Berkshire Hathaway’s (BRK.A) Warren Buffett in Burlington Northern (BNI) in a week.
On 10/10 Buffett sold $75 strike puts on 1,217,500 shares that expire 12/12 at a price of $7.094 each.
Buffett is clearly taking advantage of the market volatility and its effect of increases option pricing. The more the market swings in either direction, it increases the prices option buyers must pay. If you are a seller like Buffett, it increase the money you take in relative to the strike price of the option.
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Disclosure (“none” means no position):none
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