I originally sold those naked puts just a couple of days after Buffett got involved and the stock was $8.05 at the time.
I go with the odds and the odds in this case were certainly greatly with me. However, I couldn't envision Moody's downgrading the stock two levels after $18B in asset sales and the Buffett involvement nor could it be seen why credit default swaps started rising materially when there had certainly been no worsening of the fundamentals. BAC has less percentage exposure to the PIIGS countries than any large American bank.
Thanks for the post. I'll make it back even though it will take a few more months. With the VIX this high, I'm going to do a lot of sniping - picking off the absolute sure things such as the October 3-strikes I wrote late today that will expire just two weeks from this Friday.