Warren Buffett starts to sell put options again on Burlington Northern Santa Fe (BNI, Financial) on Wednesday (Dec. 3), as revealed by the filings of Berkshire Hathaway (BRK-A)(BRK-B).
On Dec. 3 Buffett sold 2,325,000 shares of puts on Burlington with the strike price of $75 a share at the premium of $6.3538. This is two months after his puts sales in October. These puts will expire on 01/30/2009.
As we just reported that the puts Buffett sold in Oct. are about to expire next week. These puts have the strike prices between $75 and $80. Today BNI closed at $ 74.68. Apparently Buffett keeps taking the advantages of the market volatility and at the same time trying to buy the stocks he likes to own at better prices.
Back in October Buffett sold more than 5.4 million shares of BNI puts. All of these puts will expire in two weeks. It is not clear how much puts he will sell this time.
While he was selling puts, he was buying stocks, too. On Oct. 28, Warren Buffet bought 825,000 shares of Burlington Northern at $79.65 a share. This brought Berkshire’s ownership in Burlington Northern to more than 64.6 million shares, more than 18.7% of the total shares outstanding.
This is the summary of the puts he sold:
On Dec. 3 Buffett sold 2,325,000 shares of puts on Burlington with the strike price of $75 a share at the premium of $6.3538. This is two months after his puts sales in October. These puts will expire on 01/30/2009.
As we just reported that the puts Buffett sold in Oct. are about to expire next week. These puts have the strike prices between $75 and $80. Today BNI closed at $ 74.68. Apparently Buffett keeps taking the advantages of the market volatility and at the same time trying to buy the stocks he likes to own at better prices.
Back in October Buffett sold more than 5.4 million shares of BNI puts. All of these puts will expire in two weeks. It is not clear how much puts he will sell this time.
While he was selling puts, he was buying stocks, too. On Oct. 28, Warren Buffet bought 825,000 shares of Burlington Northern at $79.65 a share. This brought Berkshire’s ownership in Burlington Northern to more than 64.6 million shares, more than 18.7% of the total shares outstanding.
This is the summary of the puts he sold:
| Derivative Security | Exercise Price | Transaction Date | Shares sold | Date Exercisable | Number of Shares | Price |
|---|---|---|---|---|---|---|
| Put Option (obligation to buy) | $75 | 12/3/2008 | 2,325,000 | 1/30/2008 | 2,325,000 | $6.3538 |
| Put Option (obligation to buy) | $76 | 10/16/2008 | 1,000,000 | 12/19/2008 | 1,000,000 | $6.20 |
| Put Option (obligation to buy) | $75 | 10/10/2008 | 1,217,500 | 12/12/2008 | 1,217,500 | $7.09 |
| Put option (obligation to buy) | $80 | 10/8/2008 | 1,190,476 | 12/9/2008 | 1,190,476 | $7.03 |
| Put option (obligation to buy) | $77 | 10/8/2008 | 761,111 | 12/9/2008 | 761,111 | $5.78 |
| Put option (obligation to buy) | $80 | 10/6/2008 | 1,309,524 | 12/8/2008 | 1,309,524 | $7.02 |
