Buffett Says Stock Ownership Became More Attractive With Tax Cut

Re:Buffett Says Stock Ownership Became More Attractive With ... by bluedevil2k on Wednesday January 10, 2018 @11:33AM (#16116325)

You didn't finish pricing out the put option. I calculate $475 for a put. But think about this a second. That's a crazy low price for this kind of investment. You're only paying a 3.3% premium to hold a put I can exercise at any point in the next 5 years. At any point in the next 5 years, if BTC goes down by rougly 7% I'm in the money. That's a daily swing for BTC in a normal week.

I think the volatility input in this equation is way off.

[ Parent | on HN ]

Re:Buffett Says Stock Ownership Became More Attractive With ... by bluedevil2k on Wednesday January 10, 2018 @11:41AM (#16116417)

And anyone who thinks this is a fair price for a PUT on BTC, please contact me as I will buy unlimited amounts of puts if you're willing to put up 50% as collateral.

[ Parent | on HN ]

Re:Buffett Says Stock Ownership Became More Attractive With ... by FabHK on Wednesday January 10, 2018 @03:55PM (#16119004)

Me too! Depending on your credit, that is. Finally a get-rich-quick-scheme I can get behind.

[ Parent | on HN ]

Re:Buffett Says Stock Ownership Became More Attractive With ... by JumpCrisscross on Wednesday January 10, 2018 @11:42AM (#16116419)

> I think the volatility input in this equation is way off

I agree. One's ability to price a put on Bitcoin is probably anti-correlated with one's willingness to sell one.

[ Parent | on HN ]