Condor Options

Trading Put Options With Buffett

DEcho: thanks!

kkin365: I don't think we ever said that a retail investor can compete against Buffett on knowledge or skill. The only claim we made is that individual retail investors have a flexibility advantage over any large institution. For confirming evidence, just witness the difficulty that major banks, funds, and prop trading desks have had unwinding positions recently.

Trading Put Options With Buffett

Yeah, that's a good question. We assumed he's happy with the positions on their own terms and isn't going to rush to deploy those premiums elsewhere. There's a warning elsewhere in this year's letter along the lines of "don't expect us to keep up past rates of performance - it's just too hard to find enough good opportunities for all this capital."