Option Update: Warren Buffett's holdings near six-year lows (MCO, USG, AXP)

Posted Oct 23rd 2008 8:45AM by Paul Foster
Filed under: Berkshire Hathaway (BRK.A), American Express (AXP), Options, USG Corp (USG)

Moody's (NYSE: MCO), a provider of credit ratings, closed at $21.61 Wednesday. MCO is scheduled to announce Q3 EPS on October 29. Warren Buffett's Berkshire owned a 19% stake in MCO as of December 31, 2007. MCO November call option implied volatility is at 117, puts are at 131; above its 26-week average of 58 according to Track Data, suggesting larger price movement.

USG (NYSE: USG), a building materials company, closed at $19.68 Wednesday. USG is scheduled to report Q3 EPS on October 28. Warren Buffett's Berkshire Hathaway owns 17% of USG. USG November call option implied volatility is at 71, puts are at 81; above its 26-week average of 44 according to Track Data suggesting larger price movement.

American Express (NYSE: AXP) closed at $25.02 Wednesday. Warren Buffett's Berkshire Hathaway owns a 13% stake in AXP. AXP November option implied volatility of 80 is above its 26-week average of 51 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: axp, berkshire hathaway, BerkshireHathaway, brk.a, brk.b, mco, Moodys, option implied volatility, OptionImpliedVolatility, USG, Warren Buffetts Berkshire Hathaway, WarrenBuffettsBerkshireHathaway, warrent buffett, WarrentBuffett

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Reader Comments (Page 1 of 1)

10-23-2008 @ 10:17AM

BHarrison said...

Warren Buffett can surely weather the economic storm; but I'm not so confident for all of the retirees who depend on their investment returns for their costs of living, or for other investors. It appears that the time may be approaching for people to have a little more "cash on hand" to weather any bad periods.

I try to not be overly pessimistic, just realistic about the situation; but that is becoming more difficult . . . and we still have a fair way to go before the economy "bottoms out". Bush and Congress WERE TOTALLY INEPT and CORRUPT. They ENABLED this corporate fraud to occur by giving into the demands of the special interests groups for
"no oversight and regulation" . They are a bunch of "educated IDIOTS"; and we have to rely on them to guide the "recovery"???

Alan Greenspan's UNREGULATED Free Market Economy turns out to be a nightmare for the USA and for the entire world. He is an intellectual IDIOT ALSO!

"The King has no clothes on . . ." and "common sense" was ignored.