Subject: Re: selling puts in Trumps world
In trumps world the risk of selling puts is higher because he will pick winners and losers. …

For once I am in absolute agreement : )

Until a few days ago, I had a long running long position in BFH, Bread Financial, that I have held via repeated cash backed short puts. They are primarily a card issuer. I closed the position just recently, Dec 19 I think, as I gradually unwind the last few US positions I have had. This seems to have been a bit of luck...

Today the big man announced plans to cap card rates at 10%, which is somewhat problematic for segments of the market where costs plus credit losses exceed that. Bread stock is down a little over 11% today, which might be justified.

Now, someone might make a case that a rate cap is a good idea in the long run. I won't argue that here. But whether it is or not, welcome to the world of "tweet whim" investing.

Jim