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.
