[TheOptionClub.com] Warren Buffett - altered put options this week?

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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