Selling naked calls OTM & covering them just before ITM?

[destriero]

that is only 5% return on his capital. I hope he is long t bills as well.

Edit: that is better than stocks or bonds in 2022.

You're assuming he has 100% of his capital in short puts? I stated that he was worth $100MM. His PM account has under $40MM in there. So assume 60MM in rates. No idea.

 

[ZBZB]

You're assuming he has 100% of his capital in short puts? I stated that he was worth $100MM. His PM account has under $40MM in there. So assume 60MM in rates. No idea.

So 12.5% return when stocks and bonds both had a negative return. Pretty good.