Duan Yongping sold 1,000 SPCX put options expiring on December 18, with a strike price of $115, collecting a premium of $23.2 per share. In total, he received $2.32 million in premiums. If the options are exercised, his actual purchase cost would be $91.8 per share ($115 - $23.2). In other words, if the stock price drops to around this level, he’s willing to buy and hold at this effective cost. The whole strategy is to first collect the premium. By expiration, if the stock price is above $115, the options expire worthless, and he keeps the premium. If the stock price is below $115, he buys the stock at the agreed price, effectively building a position at a cost of about $91.8 per share. If the price drops, he gets to buy the asset he likes. If it doesn’t, he earns the option premium. The strategy of the wealthy is so simple! Simplicity is genius. SPCX