Author Archives: admin

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.

A run-up of weeklys sorted by the time values

Posted on May 30, 2011 by admin

The following shows part of a table of CBOE weekly options with calculated time values and other values.  The lower of their position in the table, the higher the time value, i.e., MCP has the highest time value, whereas AIG, … Continue reading →

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NVDA

Posted on May 30, 2011 by admin

NVDA is breaking out of the SMA 20 and 50 lines.  It shows a strong support at 17.5-18 range.  A covered-call with an ITM strike of 19 (2.46% ITM) yields 1% return in 4 days 0r June 18 strike 19 … Continue reading →

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A few other trading candidates

Posted on May 30, 2011 by admin

A quick look shows the following interesting stocks as possible candidates: MCP, SLW, YHOO, INTC,  NVDA.  We’ll study each of them in more detail.

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What to trade next week?

Posted on May 29, 2011 by admin

NFLX is overbought.  NFLX broke out of the 260 resistance.  The one-year chart below shows whenever RSI goes above 70, it has been always followed by a correction.  RSI is now at 71.  I don’t expect NFLX price to continue … Continue reading →

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Market Condition: Neutral to bearish, range bound.

Posted on May 29, 2011 by admin

This week’s Monday Morning Outlook shows a neutral to slightly bullish posture from Schaeffersresearch.com. ChartAdvisor.com: bearish, from a technical point of view.

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Weekly Summary

Posted on May 28, 2011 by admin

Another interesting week ended with all of our trades being successful. In one of our trading accounts (we’ll call it Account EC, where we have been trading more spreads lately), we have achieved 4.8% gain this week.  Our total return … Continue reading →

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PCLN: oversold

Posted on May 25, 2011 by admin

PCLN, like the rest of the market, is oversold.   Its RSI reached 36.6 yesterday.  The last time it was this low was during last year’s Flash Crash (as low as 33.15).  Statistically, the probability of PCLN price to drop … Continue reading →

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BIDU credit put spread

Posted on May 24, 2011 by admin

I purchased a put spread of BIDU today: long weekly 120 put, short weekly 125 put.  Credit: $0.4.  4 days to expire.  The reason I chose 120-125 is b/c that area (see above) shows a lot of support.  I don’t believe … Continue reading →

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Panicking market to most traders, a golden opportunity to me.

Posted on May 23, 2011 by admin

I love this type of volatile markets, where the weak and unprepared hands are washed out, leaving the true players in the game.  I placed 2 orders this morning, and they were both filled. NFLX weekly spread: 225-230 call, with … Continue reading →

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Market Condition: Range Bound, Neutral.

Posted on May 23, 2011 by admin

Chartadvisor.com:  This week’s Market Summary is neutral to slightly bullish. Schaeffersresearch.com’s this issue of Monday Morning Outlook is near term bearish and long term bullish. VIX: Increased volatility, broke through SMA 20, still under SMA 50 value.  Recently, VIX challenged … Continue reading →

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