Coolpad Group Bets on MSTR: Stock Purchase and Options Strategy at $150

The company listed on HKEX, Coolpad Group, announced a strategic move in the U.S. technology market on February 28. The company disclosed that it allocated HKD 38.89 million (approximately USD 4.98 million) to acquire 39,000 shares of MicroStrategy, demonstrating confidence in the company’s trajectory.

Alongside the direct stock investment, Coolpad Group executed a sophisticated options strategy in the U.S. market, trading defensive strategies that strengthen its position.

Direct Investment: USD 4.98 Million in 39,000 Shares

The purchase of 39,000 shares represented a significant capital outlay for the company. This acquisition reflects Coolpad’s assessment of MicroStrategy’s growth prospects, aligning with institutional investment trends in the software and cloud technology sector.

Covered Put Options Strategy with a 15.8% Margin

In addition to the direct stock purchase, Coolpad Group sold 390 covered put options, earning premiums of USD 51,210. This complementary operation aims to generate additional income from its investment portfolio by collecting premiums from option buyers.

Strike at USD 150: Expectations of Appreciation

The options’ strike price was set at USD 150, with an expiration date of March 6. This level represents a 15.8% premium over the previous Friday’s closing price of USD 129.50 for MSTR, signaling expectations of stock appreciation.

Coolpad Group’s combined strategy—merging direct stock acquisition with the sale of covered put options—demonstrates a sophisticated capital allocation approach, seeking both short-term appreciation potential and income generation through option premiums, especially considering the USD 150 strike as a strategic level of protection and expected growth.