Berkshire’s 4th quarter results were propped up by Buffett’s $1.05Bn gains in derivatives betting (something Buffett himself once called "weapons of mass financial destruction" but, as we well know - if you can’t beat them…), which accounted for 1/3 of Berkshire’s $3.06Bn profits.

With the November options expiration approaching us Friday, I thought I would outline some trade ideas on stocks I wouldn't mind going long on, that would return good percentages by Friday (as of market close Friday November 13, 2009). When using the buy/write option strategy, it is important that you are willing to hold the security in case it is below the strike price at options expiration.

I believe a pull back [7%-15%] on the major indices is not only inevitable but necessary for a healthy market recovery. Let's face it, we've come too far too fast, and as we were oversold on the downside until early March, I believe we are currently overbought.

On the back of a MONSTER week for the stock market, the question may be - Can this rally hold? I like everyone else can't answer this question, but I do know that there are ways to protect a stock without selling it and/or spending money on put options. Simply sell call options on the stock to generate income (which lowers cost basis per share), for the closest option expiration.