I did research him. He was one of the richest people in Boston. And then he left to be a football coach. I remember reading his retirement letter as it made Bloomberg top.
What's the relationship between a stud value guy and newbs selling puts??? I get Buffets theory on vol,but I wouldn't say he's a premium seller
because it's comparatively simple with capped downside and crazy upside potential. Gain porn on WSB tapping into those get rich quick dreams probably has some influence as well.
As I recall, you are one of us. The reason for the crazy upside is, like a black swan, it seldom happened. And by the way it is not a get rich quick scheme because in real life the carrying cost for us retails practicing the art is significant. An analogy is venture/angle investing.
CSP's worked well for me. I have used CSP in the past on SPX to harvest elevated volatility. I did use a simple strategy. a) cash parked in US T-bills 1-3m. b) wait for -5% decline in SPX from all time high. ie: trigger price = all time high price * 0.95 c) issue a ~90dte put in SPX at a strike price that is -20% below ATH price. selected strike = all time high * 0.80 (step down until next available lower strike) This worked well for me and come out at ~4% annualised return or something like that. And I would take delivery of SPX if needed and hold it forever or until exit price hit.
Hmm. that's not much. With stocks much more is possible, but stocks are of course riskier (more volatile) than the said SPX index.
Depends on your objective. I had a bunch of cash that I know I wouldn't use to make a single trade or investment with for the near time. "I'm sitting on this pile of cash that I will do nothing with for the next 2-4 months. I want to stack some extra percentage points on top of what the US T-bills will give me". It worked well for my short term objective that was to sit still on idle cash.