Here is a link to some information on BH and selling puts. It would appear that they expect the market will drop and adjusted their sold put prices down.
George
--- On Sun, 5/24/09, Sandra McMakin <s.mcmakin@comcast.
> From: Sandra McMakin <s.mcmakin@comcast.
> Subject: [TheOptionClub.
> To: OptionClub@yahoogro
> Date: Sunday, May 24, 2009, 11:39 AM
> Hi,
>
> I'm new to this board. I have studied and used TA
> extensively for the past 10 years. I know very little about
> options.
>
> The following post is on another site (May 18):
>
> Warren Buffett confirms to CNBC's Becky Quick that
> Berkshire Hathaway has made changes to some of its
> controversial bets on the long-term health of stocks.
> Buffett told Becky last night by telephone that roughly $2
> billion of put options on the benchmark S&P 500 stock
> index have been altered. Changes have also been made to a
> derivative on a foreign stock index, but he's not saying
> which one. The new contracts have a lower strike price but
> cover a shorter time period.
>
> What does this mean? Is he expecting another quick market
> drop in the near future?
>
> If he is selling puts now - is he expecting the market to
> drop? I realize that he is completely invested now. It's
> been well publicized that he has very little cash left and
> has been on a buying spree for most of Q1 so it makes sense
> he is in puts.
>
> By the way, would he be selling puts or buying them? (Yes,
> I know nothing but need to figure this out - thanks!)
>
> sm
>
>
>
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