Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (33834)	3/17/2009 7:51:58 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78958

So you did not provide a single shred of evidence that this is a speculative investment. You say: "This is wrong. It is an investment with a high degree of risk relative to the dollars invested." Yes, this is what my definition of speculative investment as well. "Out-of-the-money puts are a speculation because you can lose many times your dollars invested, and I expect that Buffett is under water most or all of his entire initial investment (or even more) as of right now." - and this is where you parrot a textbook. Buffett did not sell "out-of-money-put" in standard definition. You choose not to see a difference and not to calculate the potential losses and gains. You believe without any supporting arguments that 10 year puts on the market not callable before expiration work exactly the same as a month puts on a single company. You choose to ignore Buffett's explanation why there is a difference. You just repeat whatever is in your head without doing any work or any thinking. Please build a model, come back with it and then we talk.