Warren Buffet's option strategy

Discussion in 'Options' started by viruscore1, Feb 10, 2019.

  1. sle

    sle

    @destriero I was involved in one of the tranches and recall looking at the total position in detail around 2009. The losses were somewhere in the 5.5bn range, but not 8.

    FWIW, these things are still haunting the dealers that took these trades down, due to their exotic nature.
     
    #11     Feb 10, 2019
    destriero likes this.
  2. destriero

    destriero

    IIRC BRK eventually took an $8B write-down on the position. The SPX outperformed many of the indices.
     
    #12     Feb 10, 2019
  3. RRY16

    RRY16

    Wow!
     
    #13     Feb 10, 2019
  4. ironchef

    ironchef

    According to the paper srinir posted, Buffett's main strategy is bet against beta and not shorting puts:

    https://www.sciencedirect.com/science/article/pii/S0304405X13002675

     
    #14     Feb 10, 2019
  5. #15     Feb 10, 2019
  6. ironchef

    ironchef

    My apology.
     
    #16     Feb 10, 2019