Selling a call option is the debtor. When the option is exercised, investors are obliged to buy a certain number of underlying securities at the exercise price. Usually, in most cases, the debtor's exercise means loss or dissatisfied income. However, there is a very classic situation in which what the debtor wants is exercised. This situation is a, that is, the trader originally wanted to buy the underlying securities, sold the call option parallel right, and just bought the underlying securities, and the purpose was achieved.
Here, someone must have questions. When a call option is exercised, it means that the market price of the underlying securities is lower than the exercise price. If you don't sell options, isn't it more cost-effective to buy them directly in the securities market? Indeed, this is the case if you want to buy a small quantity. But the application of A above is a very, very large amount of buying demand, especially if you want to hold shares. If you buy a lot of underlying securities in the secondary market, it will definitely drive up the price. When you really buy enough, the total transaction price is already high. Also, in the case of holding shares, I hope it can be done in secret. It takes time and effort to buy a lot of stocks in the market, and my whereabouts are also exposed. The purpose of holding shares may not be achieved.
In addition, big buyers have their own valuations of the underlying securities. They sell put options at the exercise price, that is, they have judged that the price is appropriate and they are willing to accept it. If the market price really falls to the exercise price and is exercised, they are also willing. If you are not exercised, you get royalties, which is beneficial.
Okay, that's enough. Do you understand? There are many stories about this situation in the A-share market, which is said to have been used by Buffett.