Warren Buffett Sells Option Premium | Warren Buffett An Options Seller
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Warren Buffett Sells Option Premium

Warren Buffett Sells Option Premium

Warren Buffett is worth over $100 billion and considered one of the world’s greatest investors.

As one of the wealthiest people on the planet, many traders and investors model their strategies after Buffett.

The real reason for the Oracle of Omaha’s success may surprise you, though.

Warren Buffett often relies on selling option premium, a strategy taught by David Jaffee of BestStockStrategy.com.

Instead of taking major risks, traders can sell option premium and act like an insurance company.

While selling option premium is not as glamorous or hyped as other trading strategies, it is the best option trading strategy to earn a consistent profit.

Keep reading to learn why Warren Buffett sells option premium and why you should too.

Is Warren Buffett an options seller?

Warren Buffett has earned more than $5 billion selling put options.

You cannot expect those kinds of returns right out of the gate, but you can expect considerable success when selling option premium.

Option trading is very similar to the insurance business.

One person pays a premium for insurance coverage that lasts a set period of time at a specific rate.

Similarly, options can be purchased for a premium, providing rights to the buyer for a specific amount of time.

Unlike other trading strategies, you can be wrong about the direction of the market and win your trades anyway by selling options.

Option sellers can also find success with both long-term and short-term investing strategies.

Warren Buffett will lower the cost basis for purchasing stock by using naked, short OTM puts. He also implements this strategy when targeting companies for acquisition.

If volatility is high, Buffett will choose to sell short index put options.

When a stock is overvalued, Buffett will sell options and collect option premium from option buyers.

Selling Options for Income

So, how do you enjoy the same success as Warren Buffett?

While Warren Buffett uses a lot of investing strategies and tools, selling option premium for income is one of the easiest to copy.

David Jaffee teaches his students how to sell option premium and earn a consistent profit.

In fact, you can win 95% or more of your trades and be successful as a beginner options trader.

Selling options allows you to execute trades with the press of a button and collect premium.

Options traders can enjoy a flexible source of income that works with their busy schedule while earning a profit without requiring a lot of time.

By selling option premium, you can greatly reduce your risk while maximizing your potential for profit.

David Jaffee shows his students how to structure transactions to be capital efficient and tip the probabilities in your favor. 

All experience levels can learn how to sell options for income and start trading profitability from day one.

Do you have to be rich to sell options?

Thankfully, you do not need Warren Buffett’s net worth to successfully sell options.

While larger accounts can expect larger returns, smaller accounts can still grow by selling options.

David Jaffee’s students have found considerable success with smaller accounts, ranging from $5,000 to $15,000.

If your account has at least $2,000, you can start selling options and growing your account.

The secret to successfully selling options is not an impressively large account.

Like Warren Buffett, David Jaffee relies on the right trading strategy to be successful.

By selling option premium and being patient and disciplined with his trades, David Jaffee is able to win almost every trade.

Warren Buffett did not earn his fortune by trading recklessly, and you won’t either.

To sell option premium and earn a profit, you have to be strategic about your trades.

David Jaffee typically completes three to four trades per week, instead of aggressively trading and getting into trouble.

Learn How to Trade Options Like Warren Buffett

Are you the next Warren Buffett?

If you want to enjoy a portion of his success, it is time to learn the best options trading strategy.

David Jaffee’s online options trading course features 12 comprehensive lessons.

You will learn how to sell option premium, strategically structuring trades to reduce risk and increase profit potential.

Instead of taking unnecessary risks or relying on less-than-successful strategies, you can implement an options trading strategy that optimizes your probability of success.

When you start acting like an insurance company, you will quickly learn why Warren Buffett sells option premium.

About the Author David Jaffee

I (David Jaffee) help people become consistently profitable traders while minimizing risk. I graduated from an Ivy League University and worked at some of Wall Street's most successful investment banks. Subscribe to my YouTube channel for valuable videos - BestStockStrategy YouTube Channel​. Finally, if you're looking to Land a Finance Job, then I've put together the best step-by-step course at LandaFinanceJob.com. My personal website is DavidJaffee.com.

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