"By selling put options on your own debt, you are actually betting against NOT defaulting" --trinidon2k
Correct. If I sell ("write") lots of puts on my own debt (credit cards, etc), I am essentially betting that I will NOT default on my debt. There are two possible outcomes to doing this
A) I win the bet and keep the premium from selling the option.
B) I lose the bet (I go banrupt and default) and banruptcy wipes away my obligation to make good on the options.
"By selling put options on your own debt, you are actually betting against NOT defaulting" --trinidon2k
Correct. If I sell ("write") lots of puts on my own debt (credit cards, etc), I am essentially betting that I will NOT default on my debt. There are two possible outcomes to doing this
A) I win the bet and keep the premium from selling the option.
B) I lose the bet (I go banrupt and default) and banruptcy wipes away my obligation to make good on the options.
--Eric deCarbonnel
VIEW VIDEO
http://www.youtube.com/watch?v=ZnZnkaq8Nf8&feature=youtu.be