Buffet sells way out of the money puts

Cool story from the dude that doesn’t realize that he’s shorting puts.

 

Cool story from the dude that doesn't know how to figure profit and loss on a covered call.

 

Dude, stop embarrassing yourself. It's arb-equivalent to a same strike short put. So when the mkt drops and vol goes up... you lose. And you're losing.

 

Hmm. I wonder what happened to PoopyDeek and his conversations with me.

 

• He PUT you on ignore.
• I should get some Likes for the pun.

 

Yes, that was clever. Teehee.

 

@lightninboy's math is different from yours. He doesn't count unrealized losses on his underlying as losses.

 

This place is a fucking asylum.

 

• Time Premium = (Strike + Call Bid - Stock Last Price)
• Calculate Net Debit: (Stock Last Price - Call Bid)
• Potential Return = Time Premium / Net Debit

Do we agree on that?

 

And how exactly are you making money selling DITM covered calls,otherwise known as puts??