Duan Yongping's "Oolong" selling Bubble Mart Put hides the most simple and exquisite. Old Duan made a big mistake selling Put on Bubble Mart this year. In mid April, he said on Snowball that he had sold 225000 put options, only to be reminded by netizens that one contract for Hong Kong stock options corresponds to 200 shares, not 100 shares in the US stock market. The actual exposed position will double directly, and if all options are exercised, nearly HKD 7 billion will need to be prepared to acquire 45 million shares, immediately becoming the third largest shareholder. He replied, 'It's okay to sell put, otherwise it would be troublesome.'. ”This may sound light, but the gameplay behind it is truly worth savoring. Selling Put is not betting on a decline, it's a 'buy with insurance' The essence of Lao Duan's operation is still the same set he has been using: only selling Put on the targets he has long been optimistic about. Not bearish on Bubble Mart, but the opposite - wanting to buy, but not wanting to invest heavily at a high price all at once. The logic is simple: I am optimistic about the long-term value of a stock, but the short-term stock price may fluctuate or even rebound. Selling Put? First, collect a premium (premium). If the stock price does not fall below the exercise price, the option will be invalidated and the money earned will be in vain with zero cost; If it really falls below, we will receive the goods at the exercise price, but the previously received premium has already been deducted, and the actual purchase cost has been lowered. Old Duan used option tools to leverage and buffer the process of building a position. If buying spot goods directly, there will be greater financial pressure and stock price volatility risk; Selling Put first puts the royalty into your pocket, which is equivalent to locking in a portion of the cost first. The subtlety lies in the phrase 'collecting money and waiting for opportunities' Ordinary people tend to have two extremes when building positions: either to buy all at once or to wait and see for a pullback. Duan Yongping's path is in an intermediate state. 1) The stock price has risen: the premium has been pocketed, and the position can be replenished later or earned without replenishment. 2) Stock price correction: Just in time to receive goods at a low price, the cost is lower than buying directly. 3) The stock price is sideways: continuing to collect royalties will increase the utilization rate of funds. This is not a sophisticated mathematical model, but rather the use of option tools to implement the most basic "safety margin" thinking of value investors, with premium being the additional buffer. The core of Duan Yongping's gameplay is to first establish a safety margin and then discuss buying. Options are an important tool here and also demonstrate the characteristics of options: 1) Short term trading is used to bet on short-term fluctuations, with maximum losses limited to the premium and no risk of additional margin. In addition, by combining strategies such as price differentials, potential losses can be flexibly limited and risks can be better controlled. 2) Long term investors do not bet on direction or volatility, but use the unreasonable pricing of options to enhance returns, reduce costs, and safely buy good companies at a discount. Taking into account the volatility of the market during operations, options are used to reduce potential risks and ensure flexibility in the face of market instability. In fact, not only Lao Duan and Buffett, but also the familiar "White House stock god" Pelosi's stock market operations are mostly options. During last year's trade war, Pelosi bought a large number of calls and made huge profits. For both short-term traders and long-term investors, the proper use of options is a good tool to obtain alpha from the market. Options are not just tools, they can be said to be a way of thinking. In a volatile market, it provides more flexibility and protection, allowing us to maximize returns while keeping risks under control. This gameplay is essentially a refined management of risk and return in mature markets. Having stocks in hand, you can sell Covered Call and gradually reduce your holdings; If you want to increase your position but don't want to spend a large sum of money at once, sell Put first to collect royalties and reduce the cost of buying. When there is a large fluctuation, this buffer layer is particularly useful. For cryptocurrency market users, it is now convenient to use options for US stock trading. @BITstocks_CN will launch its option function on July 24th, with simultaneous opening of margin trading and securities lending. By combining these two, ordinary investors can also engage in a combination of "collecting royalties+leverage allocation" similar to the old model. The key BIT is not just adding an option function casually: margin trading and short selling require real-time margin management, extreme market risk control, and a complete system of clearing and delivery; Options need to be integrated with OCC, real-time Greece calculation, and exercise delivery capabilities. If BIT can run all of these, it means that it has a complete brokerage business line, with a complete set of stocks, leverage, and options, which is the foundation that a mature brokerage should have. Provide users with a complete, efficient, and professional US stock trading tool chain, especially suitable for investors who want to be real US stocks in the cryptocurrency market. For Chinese language users and cryptocurrency players 1) Simple account opening: Chinese Mainland ID card can be opened without overseas address certification and CRS synchronization. 2) The inflow and outflow of funds are more in line with the habits of the cryptocurrency industry: stablecoins are directly deposited into US stock accounts and received in seconds. Withdrawals can be made quickly without the hassle of transferring funds to overseas banks or cross-border remittances. Stocks support transfer, which are real stocks and not shadow assets: they have dividends, voting rights, and can be transferred to other compliant securities firms through ACATS. Not a common tokenized product or CFD synthesis in the cryptocurrency market, truly holding company equity is not just betting on a price curve. 3) More cost friendly: 0 commission, fixed fee per share. Buying a Nvidia for $200000 incurs a transaction fee of less than $10. Traditional platforms that charge proportionally tend to charge more for larger amounts. There are still phased zero interest activities on the margin trading and short selling side, further reducing costs. BIT is a rebranded version of the old cryptocurrency asset management platform Matrixport, and its various entities have obtained multiple high-value licenses: Singapore MPI License for Major Payment Institutions, Switzerland FINMA Collective Asset Management License, Hong Kong TCSP License for Trust or Corporate Service Providers, Bhutan IPA License, providing currency services, matching transactions, custody, financial transactions, and other services without any compliance issues. One account manages both encrypted assets and US stocks ETF、 Fixed income and easy cross market allocation. Supporting margin trading, securities lending, and options, with an open API, long-term trading users can use it comfortably - much more user-friendly than IBKR's interface and complex processes. It is not a problem to say that BIT is an upgraded version of IB, which is an encrypted version. Nowadays, the market's AI, technology, and macro stories are constantly evolving, and volatility is the norm. Having margin trading and securities lending in hand can increase leverage and amplify opportunities, while having options can hedge or collect premiums, the flexibility is completely different. Opening an account when it is truly needed is often already a slow process. Setting up the account first is a form of configuration. For those who want to have an extra layer of tools in a volatile market without being bothered by account opening and fund circulation, the BIT wave of options and margin trading can be a key focus.