Retail investor: I've read The Intelligent Investor three times. Buy great companies below intrinsic value, margin of safety, all of it. But I'd never touch options.


Me: You realize you already believe everything I do, right? You're just missing one page.
Retail investor: Options aren't in Graham's book, man.
Me: Walk through it. You find a great company. You calculate fair value. You set the price you'd buy at with a margin of safety. Then what do you do?
Retail investor: Put in a limit order & wait.
Me: Right. & you wait for FREE. Selling a portfolio secured put is your exact limit order... same company, same price, same margin of safety... except the market pays you cash flow today for placing it.
Retail investor: Huh. When you frame it as a paid limit order...
Me: It's value investing with a cash flow layer. The analysis doesn't change at all. Buffett does this exact thing... collected billions doing it.
Retail investor: Three reads of Graham & I've been leaving a huge part on the table.
Me: You did the hard part already. The valuation IS the hard part. Options are just a way to magnify a super bullish setup. Take the cash flow and buy more shares. Keep ratios in check. Portfolio secured only 1+ year expiration date only.
Few get this...
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