--- title: "[Mou Weekly] Bought Micron at $1,000 — where did the money come from? (Week 36, 2026 | Issue No. 286)" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43776089.md" description: "First, take a look at this screenshot. This is a sell Put close-out slip from my company's live trading account, with a profit of $44,392. Upon seeing this image, most people's first reaction is: Micron went up again. That's right, on 9/4 Micron closed at 1016, up 6.1% for the day. But this money has little to do with whether it rose or not. The Micron stock in this account had a cost basis of 1000 and a current price of 1016; over four months, the stock price only moved 1.6%. Over these four months, the cumulative P&L for Micron in the account was $101,585, of which stocks contributed $4,680 and options contributed $96,905. 95% of the money came from selling volatility..." datetime: "2026-09-05T15:04:34.000Z" locales: - [en](https://longbridge.com/en/topics/43776089.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43776089.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43776089.md) author: "[谋定后动](https://longbridge.com/en/profiles/2064990920919875584.md)" generator: "portal-rs" --- # [Mou Weekly] Bought Micron at $1,000 — where did the money come from? (Week 36, 2026 | Issue No. 286) **Let's look at a screenshot. This is a sell-to-close Put position from my company account's live trading, with a profit of $44,392.** Seeing this picture, most people's first reaction is: Micron went up again. That's right, on 9/4 Micron closed at 1016, up 6.1% for the day. But this money has little to do with whether it goes up or down. The Micron stock in this account had a cost basis of 1000 and a current price of 1016; over four months, the stock price only moved 1.6%. Over these four months, the account's cumulative P&L on Micron was $101,585, of which $4,680 came from the stock and $96,905 from options. 95% of the money came from selling volatility, not from the stock price. Today, I'm laying out every trade on Micron in this account, from the first one on May 8 to this one on September 4, including the losing ones in between. Because among us, many friends are in the exact same predicament as I was then: A stock has already risen from 315 to 747, more than doubling. You missed the boat. What can you do now? ## **May: An insurance policy one-third below the current price** On May 8, Micron closed at 747. From 315 at the start of the year, it rose 137% in four months. If you chase the stock here, you're bound to feel nervous. But there's one thing that rises faster than the stock price: implied volatility (IV). The price of an option is essentially an insurance premium. The crazier the stock moves, the more expensive the insurance. At the time, Micron's IV was above 70%, meaning that selling a July Put with a strike of 500 would bring in a $28 premium. A strike of 500 is one-third below the current price. In other words, the market pays you $28 per share to bet that Micron won't drop by 33% within two months. This was the first trade on Micron in this account: Don't buy the stock; sell insurance first. Throughout May, this 500 Put rolled twice: buy back after a rally, then sell a closer one. Two other short-term Calls far OTM expired worthless. In total, by May 27, the account's cumulative profit on Micron was $16,000, with zero shares held. End of May: The short squeeze loss of $21,000 Then came the only move in this round that lost big. On May 21, around Micron at 760, I sold a May 29 Call with a strike of 850 for $10. The strike was 12% above the current price, based on the logic that a 12% rise in a week was unlikely. Instead, Micron rallied from 760 to 970 in a week, a 27% jump. The Call sold for $10 had to be bought back for $115. The single-trade loss was $20,963, turning the account's cumulative Micron P&L from +$16,000 to -$4,638. ![image](https://pub.pbkrs.com/social/topic/e622f9b390db6be75aeb135543950254?x-oss-process=style/lg) This needs special mention because it represents the most typical failure mode of this strategy. Selling Puts earns money from "not falling;" the risk is assignment, leaving you holding the stock. Selling naked Calls earns money from "not rising;" the risk is unlimited. Betting on "no rise" on a stock with 70% IV leaves you exposed to the direction with the lowest probability of success. After this trade, Calls on Micron were only sold under two conditions: when holding the underlying stock, or when the strike was sufficiently far OTM. ## ## **June: One week of panic, premiums doubled** In early June, Micron fell from 970 to 864 in a week, down 11%. The previously sold 950 Put was assigned, resulting in a realized loss of $7,602 on June 6. Cumulative P&L hit its low of -$7,644. But another event happened that same week: IV surged from 70% to over 90%. The sharper the drop, the more expensive the insurance, and the more sellers should step in. On June 6, I sold an 850 Put for $45. On June 12, as Micron rebounded to 981, I sold a June 26 Put with a strike of 1000 for $102. Two weeks of insurance collected 10% in premiums. On June 27, this Put expired worthless, yielding a single-trade profit of $27,197, the largest in these four months. The account's cumulative P&L flipped from -$7,644 straight to +$40,000. ![image](https://pub.pbkrs.com/social/topic/03b54786c4ba4c63b8b422a7f1728253?x-oss-process=style/lg) ## **July: Taking delivery at $1000, then immediately selling Calls** On June 25, Micron hit an all-time high of 1213. That day, I sold July 10 1400 Calls and 1000 Puts, collecting premiums on both the upside and downside. On July 10, Micron closed at 979. The 1400 Call expired worthless, while the 1000 Put was assigned, resulting in taking delivery of the stock at a cost of 1000. This explains the origin of "Micron entry was late, around 1000." Here's a clarification: Assignment isn't being "trapped;" it's the price accepted when selling the Put. Selling the 1000 Put brought in $23, effectively committing to buy at 1000 but with a net cost of 977. Instead of waiting for a rebound, on July 21, I directly sold an August 21 Call with a strike of 1050 on the stock for $52. It was bought back on August 11 for $2.3, earning $14,905 in a month. Before the stock even broke even, the Call had lowered the cost basis below 950. ## **August: Low of 829, no stop-loss, roll for time** On August 3, Micron dropped to 829.5, the four-month low. The stock had a floating loss of 17%. The August 21 Put with a strike of 850 was deep ITM. Without action, another batch of delivery would occur on August 21. The solution was rolling: Buy back the 850 Put for $99, realizing a loss of $10,925; simultaneously sell an October 16 Put with a strike of 800 for $131. The loss on the August leg was offset by the $131 premium collected, which bought two months of time. If Micron returns above 800 within two months, that $131 is pure profit; if it continues to fall, take delivery at 800, which is $50 cheaper than 850. On September 4, Micron was at 1016. The 800 Put was bought back for $15. The $44,392 shown in the screenshot is from this leg. Three prerequisites; don't copy without them Over four months, the main account executed 60 trades with a cumulative P&L of $101,585. Laying out the process makes the three prerequisites of this strategy clear: First, fundamental support. Dare to take delivery at 1000 because the logic of HBM supply shortage and consecutive DRAM contract price hikes remains unchanged. This is what I repeatedly emphasized in the group. The prerequisite for selling Puts is that you genuinely want to hold the company at that price; otherwise, assignment day marks the beginning of disaster. Second, high IV. Micron's IV has consistently ranged from 60% to 90% this year. For the same distance from the strike, the premium is three to four times that of Apple. Applying the same moves to low-volatility stocks yields insufficient premiums to cover assignment risks. Third, resilience against drawdowns. By end of May, cumulative floating losses were $25,700; in early August, the stock floating loss was 17%. The account wasn't forced to liquidate because the Micron position had room. Entering at highs isn't the problem; being fully invested at highs is. From one Micron to a basket of AI If one Micron can be traded this way, what about a basket of stocks in this AI rally? This is the starting point for constructing the MAAI index. For new friends who don't know what MAAI is, let me clarify. The MOU All-in AI Index, ticker MAAI, is a price index we constructed ourselves, with a base date of January 2, 2026, closing at 1000 points. It comprises 13 constituents divided into four fixed-weight layers: Hardware layer (shovel sellers) at 35%, Software layer (monetization) at 35%, Physical AI layer (positioning) at 20%, and Precious Metals layer (ballast) at 10%. Equal weight within layers, rebalanced on the first trading day of each month. Why four layers? This AI rally isn't a single track; it's companies in different stages rotating. H1 was hardware solo; software took over in July; physical AI waits for catalysts. Betting on one layer feels great when it's hot, but you just watch when rotation happens. Combining all four makes the index a "no need to guess who takes the baton" portfolio. Performance: Closed at 1468.75 on Sept 3, YTD +46.9%, vs QQQ +17.3% and SPY +13.8%. The cost must also be stated: YTD max drawdown -21%, annualized volatility 37%, more than double QQQ. Returns are exchanged for volatility; this index isn't suitable for those unable to withstand a 20% drawdown. ![image](https://pub.pbkrs.com/social/topic/3152a434d9dd78ffed1f6c300a14df16?x-oss-process=style/lg) YTD attribution: Micron alone contributed +204%, the index's top contributor. Echoing the opening screenshot: The stock that rose the most in the index is precisely the one generating profits via volatility selling in the account. The index did two things this week. First, a refresh on Sept 1: NVDA added to Hardware, CRWD to Software, five stocks per layer. Second, a V-shape recovery: Dropped to 1411 Tue-Wed, recovered fully Thu with a +4.09% candle. Software contributed 2.64 points in one day, with SNOW contributing 1.12 points alone. ## **Constituent Review** Starting this issue, we will regularly review several constituents weekly, discussing fundamentals and corresponding account actions. We focus on actions and logic, not positions. **NVDA** Up nearly 9% on earnings day, gave back half the next day. The numbers were solid: revenue doubled, GPM 75%. The issue was everyone knew the numbers were good, so a pause was natural. This week's action was simple: Didn't chase the earnings candle; bought next June's 200 Calls in two tranches on the pullback. Why Calls instead of stock? Because Calls are cheap now. **SNOW** Surged 16% the day after Wednesday's earnings, the biggest gainer in the index this week. Core message: Money from this AI wave is flowing into software; Snowflake is the direct beneficiary—more usage means more payment. Two actions taken. Day before earnings, bought back the Oct Put (already mostly profitable) to lock gains, replaced with selling a weekly Put. The bet wasn't direction, but that IV would collapse post-earnings. After the surge, sold next Jan's 400 Call. Not bearish; up 16%, locking in some gains. **TSLA** The worst performer in the index YTD, down 14%, yet rose 8% this week, ranking top three. Why? No new stories, just oversold conditions plus renewed interest in the physical AI line. Account action placed Aug 23: Sold Jun next year's 600 Call for $18. Sat for 11 days, filled Thu when it rallied to 376. Not predicting Thursday's high; pre-planned to sell upside space above 600 at this price, leaving the rest to the market. Risk warning doesn't mean bearish The biggest risk of selling Puts isn't assignment, but assignment followed by further drops. Aug 3 at Micron 829 was a drill; without room to roll, the outcome would have been forced assignment and stop-loss at the bottom. The index's -21% drawdown actually happened, it wasn't backtested. Writing the losing trades in more detail than the winners illustrates this point. Pullbacks aren't scary; they're when IV is highest and insurance is most expensive. As long as fundamentals hold, pullbacks are the best entry opportunities for insurance sellers, not signals to retreat. The market never buys predictions; it buys your resilience in panic. Stock prices are given by the market; premiums are earned by yourself. Buying Micron at 1000 and making $100k wasn't about calling the direction right; it was about selling insurance to others when they were most afraid. **\[Next Week Outlook\]** ![image](https://pub.pbkrs.com/social/topic/3ae13b0c3ad81540ed16e5e822f27aa9?x-oss-process=style/lg) **\[**[**For specific holdings details, please visit the website**](www.finplusplus.com)**\]** **(All trading records in this article are from the author's personal account, for review and sharing purposes only, and do not constitute investment advice; option selling strategies carry risks of assignment and unlimited losses. Please make decisions based on your own risk tolerance.)** ### Related Stocks - [MU.US](https://longbridge.com/en/quote/MU.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**