Britishsteel

Barron's Looks at Buffett's Buys

I have searched and have yet to find any indication that Warren Buffet has ever used options in his investment approach, could this be a calender spread he is doing ? And buying calls on the spy on unnamed foreign exchangees? They do not say what strike he bought and if they are equity options or e-mini S&P contracts. If so a good call because as the NY post said in Bold headlines its a bullish call. so if he wrote puts and people read that and buy up the S&P by a few hundred points in the next few weeks and those puts he sold lose half their value he could buy them back and pocket 2.5 billion in quick profit. Also if its a calender spread he stands to make the other 2.5 bilion back on the call side . and then when the markets are through popping and go back to test the lows he can do it all over again. And yet this is IF he did and does not prove to me that he is Bullish on the S&P just very savvy knowing that the announcement could cause a huge rally in the markets. BUT the RED FLAG for me is his own quote which is 'derivatives are financial weapons of mass destruction" AND options are derivatives. I do not think he is Bullish at all just taking advantage of a savvy strategy that his own name may cause to work out in his favor and by proxy prop up the market and halt the coming slide until the elections.