So, my limit sell order that I put on Friday went through today at $79.88. That along with the chart above makes me feel like I actually know what I'm doing. I'm still just picking up pennies in front of the steamroller though. Looks like I saw the steamroller coming today as lots of sell orders came in after it hit $80 - see the big spike in volume around 1:30pm when it briefly tested above $80. I don't normally analyze intraday charts this closely, but I do like the feeling of selling right at the high.
We'll see if this becomes a 1 or 2-month high, as I'm more of a monthly holding period trader. Looks there is still some index buying going on, but after that subsides I think a lot of people will sell-out. Interestingly enough, with all the action going on in Berkshire with money following the index move, option premium prices seem low to me. If I were more adventurous I would try an option straddle a couple months out.
I will wait and see how high Berkshire ends up going before a major pullback. Then I will look at selling a put to get back in - but the premiums are pretty low. I think people are expecting more of Berkshire's traditional (pre-split) volatility and beta, and are viewing the volatility we have seen as a symptom of the index rebalancing. However, I think what we are seeing is more of what to expect as Berkshire is becoming a popular trading vehicle.
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