Speaking of late July when I was aggressively trading SPCX, I noticed Duan Yongping smartly sold 1,000 put options (strike price $115, expiration date December 18, 2026) at $23.26 per share. At the time, SPCX was in a continuous downtrend, oscillating in the $110-$100 range, searching for a bottom. Nobody knew where the bottom was, and nobody could tell if SPCX would drop to $80. About two weeks after selling the puts (August 5, 2026), Duan Yongping saw SPCX’s stock price fall below the strike price. Instead of panicking, he implemented a “dual-layer bottom-fishing” strategy: he directly bought 100,000 shares of SpaceX stock on the secondary market at a cost of $108.68 per share. Since he had already collected $23.26 per share in premium, his effective cost if exercised would be approximately $91.74 per share. In other words, he would only lose money on this options trade if the stock price fell below $91.74. This defensive buying strategy, which retreats to advance, is one of Duan Yongping’s signature moves—and it’s proven to be highly effective. If the stock price continues to drop, he can acquire shares at a cheaper price; if it rises, he pockets the premium. Essentially, he profits either way—it’s just a matter of how much. However, the key to this approach remains the choice of price and timing. Before selling puts on Binance or employing a similar “defensive buying” strategy, it’s recommended to go through this checklist: 1. For this asset, even if exercised or if the price drops near the strike price, am I willing to hold it for 3 months, 6 months, or even longer? 2. After deducting the premium, is the effective cost below my reasonable buy-in price? 3. Do I have enough margin and cash to cover the worst-case scenario? Selling puts isn’t free money—it’s exchanging the obligation to buy for a premium. 4. Does the expiration date align with my holding period? Too short and you risk getting hit by volatility; too long and you face more uncertainty. 5. Will I panic and close out at the worst possible time due to short-term unrealized losses? If you can answer these five questions, your strategy resembles investing; if not, it’s just trading.