“ If you have written puts with various strikes, expiry dates, and underlying stocks, then you can use the same cash pile to back up more than its face value worth of short puts. I did this for years, and never needed to actually use more than 1/3 of the cash for assignments. Even if you did need more than your pile, you'd merely be in the situation of using a broker loan for a day till you sold the stock you'd been assigned, so the "tail risk" is not particularly bad.“ Yikes bro, this is the Berkshire Hathaway board are you trying to kill uncle Warren? There is zero chance, zero, that Buffett would ever bless shorting puts on margin. This is a terrible idea, off the charts, terrible. Over the years Ive had several friends go very broke doing silly sh$t.This is a top three way to go broke. This should not be on the Brk board, porn is more appropriate. Unreal.

Berkshire Hathaway FAQ

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