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Buffett's S&P 500 Puts: Big Blunder?

he already lost on these positions. like you said, he sold insurance on the s&p and the s&p went down, he lost, period, and of course he has to post more collateral, which in his business is a disaster. yes, in 20 yrs. the mkt may go up, but what's the opportunity cost of the increase in collateral he needs to post? especially now when no one can borrow at low rates including berkshire.

Is Buffett Really Losing His Touch?

I think his blatant manipulation of BNI speaks volumes. selling huge amounts of puts right before berkshire reports their quarter is pretty novel but shows that he's desperate to avoid mark to market hits to his holdings for some reason.