Although traders who are comfortable flipping stock and spreading options typically don’t look to Berkshire Hathaway for advice or for trading cues, an interesting idea showed up in Berkshire’s recently released 2007 annual report. On page 16, the chairman explains the two categories of derivative contracts that the company does hold.

Briefly stated, they’ve sold some extremely long-dated European style index puts. Just as value investors perennially look for ways to mimic Buffett’s equity moves - and frequently end up frustrated - so any attempt to copy this bullish (if comparatively straightforward) options play will take a little effort...