Can be understood as setting a limit order.
If it doesn’t get filled, you still get your money back.
How great is that?
If it doesn’t get filled, you still get your money back.
How great is that?
Post
Atlas Markets
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Buffett got paid $7.5M in 1993 to NOT buy Coke stock. That's the setup: sell puts, collect premium, buy shares only if they hit your price.
Berkshire sold 5M put options on $KO at $35 strike when it traded ~$39. If Coke dropped below $35, Berkshire bought at a price Buffett already wanted. If not, they kept the premium. Coke stayed above $35, so Berkshire banked the full $7.5M.
That's a cash-secured put. You don't need Berkshire's balance sheet to run it.
Pick a stock you'd own anyway. Choose a strike below current price. Sell the put, set aside cash for 100 shares, collect premium upfront. Either you get paid to wait or you buy the stock at a discount.
No trading background required. Just a list of names you want to own and the discipline to name your price.
Not financial advice—education only.
Berkshire sold 5M put options on $KO at $35 strike when it traded ~$39. If Coke dropped below $35, Berkshire bought at a price Buffett already wanted. If not, they kept the premium. Coke stayed above $35, so Berkshire banked the full $7.5M.
That's a cash-secured put. You don't need Berkshire's balance sheet to run it.
Pick a stock you'd own anyway. Choose a strike below current price. Sell the put, set aside cash for 100 shares, collect premium upfront. Either you get paid to wait or you buy the stock at a discount.
No trading background required. Just a list of names you want to own and the discipline to name your price.
Not financial advice—education only.
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