Buffet sells way out of the money puts

[PoopyDeek]

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

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

 

[lightninboy]

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.

 

[PoopyDeek]

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.

 

[lightninboy]

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

 

[OptionsOptionsOptions]

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.

 

[Overnight]

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

Yes, that was clever. Teehee.

 

[ironchef]

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

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

 

[PoopyDeek]

This place is a fucking asylum.

 

[lightninboy]

• 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?

 

[taowave]

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

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.