Where is the Money Coming From?

[william the wie]

I write puts, often in the money if the premium is high enough and the company is solid enough, so how come I am running 150% APR on invested capital? In the rare cases where the put is exercised I just write a call and reinvest the dividends until the issue goes bye-bye. Other than the assumption that the majority is wrong by definition in all cases I do not try to figure out what will go up or go down. I am just wondering how long can my counter parties stay solvent?

 

[Toddsterpatriot]

I am just wondering how long can my counter parties stay solvent?

The counterparty for your options trades is OCC.
They have about $100 billion in collateral.