Earn $110 Selling put options on coke Lisa πWarrant buffet
**Lisa's Investment Wisdom: Making Finance Fun and Flirty** ππ°πββοΈ
So, here's the deal, darling: Option contracts? They're like getting a hundred shares all at once! Now, KO's strutting around at $61.50, but I've got my eyes set on snagging it at $58.50. How? By teasing the market with a cash secured put at $60, snagging a sweet $1.50 premium. That's how you play the game, reducing the price tag like a savvy shopper, all while looking fabulous for three whole months. And if it doesn't dip low enough? No sweat, I'll just keep selling puts until it falls into my lap. ππΌ$Coca-Cola(KO)$
**Buffett's Big Brain Move: A Lesson in Sass and Strategy** π©π‘πΌ
So, let's rewind to '93, babe. Buff Daddy himself had his sights set on KO, but he wasn't about to break the bank for it. Nah, he's too smooth for that. Instead of splurging, he flipped the script, sold some put options, and cashed in a cool $7.5 million while he twiddled his thumbs, waiting for that price drop.
KO was strutting at $39 a pop, but Warren? He was feeling more like $35 was his jam. So, he flips the script, sells some puts at his price, and collects a sweet $1.50 per share for agreeing to buy later at his terms. Smooth moves, Buff Daddy, smooth moves. πΊπΈπ€
**The Lowdown on Put Options: Playing Hard to Get** π²ππͺ
Listen up, loves: Put options? They're like having a secret weapon in your arsenal. Buyer gets the power to dump a hundred shares at a set price, anytime they fancy, until the contract's bedtime. Meanwhile, us sellers? We're promising to catch those shares if they come tumbling down. But, and here's the kicker, we get paid to play this game. That's right, sweetie, premium's the name of the game.
For Buff Daddy, it was a sweet $1.50 per share for KO. Now, if the option stays in the shadows, that premium's all ours to keep, like finding cash in your pocket on laundry day. But if the buyer pulls the trigger, no worries, that premium? It's shaving down our cost, making the deal even sweeter. So when Buff Daddy's forced to buy KO at $35, it's like snagging a deal at $33.50 a pop. Now, that's what I call smart and sexy finance, darling. ππΌβ¨
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