Buffet sells way out of the money puts

Has Warren Buffet sold a large number of way out of the money airline puts which he is now looking forward to being exercised against him? This would be a typical strategy for him. He has shown interest in airline stocks in the past.

 

I dunno. I figure DITM covered calls on the travel industry are some of the best opportunities.

 

would he not wiped out when vix hits 40? wrong he is cash rich

 

• But the whole idea of selling options is collecting the premium and taking advantage of time decay.
  
• ITM = very little premium and time decay. The value is tied up in the intrinsic value.

You want to sell OTM options.

 

I don't sell naked. I don't trade puts. I don't trade spreads. I'm making money on DITM covered calls in this bearish, volatile environment.

 

lol you’re making money by shorting OTM puts? No you’re not.

 

I don't trade puts.

 

"Has Warren Buffet sold a large number of way out of the money airline puts which he is now looking forward to being exercised against him? This would be a typical strategy for him. He has shown interest in airline stocks in the past."

US Air in the 90's - not his best pick. Salomon had to create a hybrid buy-write to get him out.

 

every covered call is a synthetic short put... so no, you’re not making money shorting puts.

 

Since I did make money selling DITM calls, according to you I did make money shorting puts.