Well-known investor Duan Yongping posted on Xueqiu and included accompanying images to disclose his holdings related to Micron Technology (MU). He said that people who buy short-term options are most likely gambling, while those who sell are probably either insurance companies or running a casino. The key is controlling the odds through rules; selling puts relies on understanding the business—i.e., the probability or your edge.
He emphasized that you shouldn’t expect to win every single trade, but you must not touch things you don’t understand. The images show his recent trading record includes: on August 10, a Micron put contract he had previously sold—100 shares with a strike price of $870—was exercised, so he was allotted to buy 10,000 shares of Micron stock for a total amount of $8.7 million; on August 11, he sold 100 call contracts expiring August 26 with a strike price of $870 at a trade price of $37.55, receiving about $375,500 in premium. In addition, the screenshot shows that on August 12, 14, and 17, there were 100 put contracts with a $870 strike expiring worthless.$MU
He emphasized that you shouldn’t expect to win every single trade, but you must not touch things you don’t understand. The images show his recent trading record includes: on August 10, a Micron put contract he had previously sold—100 shares with a strike price of $870—was exercised, so he was allotted to buy 10,000 shares of Micron stock for a total amount of $8.7 million; on August 11, he sold 100 call contracts expiring August 26 with a strike price of $870 at a trade price of $37.55, receiving about $375,500 in premium. In addition, the screenshot shows that on August 12, 14, and 17, there were 100 put contracts with a $870 strike expiring worthless.$MU