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.

CRM: I rolled up my short options for more time value.

Posted on May 20, 2011 by admin

CRM reported good earnings.  My covered call (short May 21 $125 call) is due today.  CRM is a good stock with good time value and I want to keep it.  So I bought back the call (strike 125) and sold … Continue reading →

Posted in Daily Journal, Educational, Trading Strategy | Leave a comment

OPEN: A case study of how to roll up.

Posted on May 19, 2011 by admin

OPEN: We started a position on OPEN on 3/21/11 with a covered call (April 16, $90), cost 86.8.  On 4/14/11, OPEN was above 104.  We rolled up the April call to May 21, $90, for an additional profit of $2.7. … Continue reading →

Posted in Today's Trade, Trading Strategy | Leave a comment

This week’s trades

Posted on May 16, 2011 by admin

I set up the following trades today. A put spread for NFLX today (long 230 put, short 235 put, exp this Fri), $50/pair of contract.  NFLX’s 20 day SMA is 237.   I chose put, b/c of higher profit. A … Continue reading →

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Cautiously bullish.

Posted on May 16, 2011 by admin

Both Chartadvisor.com and Schaeffersresearch.com have a bullish view long term.  Near term choppiness is expected, however.  With fear rising, Greek issues and the ramifications of IMF turmoil (its ability, or lack of it, in helping Greece out of its financial … Continue reading →

Posted in Market Condition | Leave a comment

Weekly trading summary and account update

Posted on May 15, 2011 by admin

The past week was, again, profitable.  Our 3 spreads trades were all successful (NFLX, PCLN and LVS).  This week’s investment return is 8.3% for the trading account.  The total return for this trading account for the last 7 weeks is … Continue reading →

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PCLN was a bit scary today.

Posted on May 12, 2011 by admin

Glad to see the market first fell, then recovered and gained by closing, confirming that the market is trading in a range.  Especially of interest today is PCLN, falling to as low as 515. My setup of PCLN spread was … Continue reading →

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Why covered calls?

Posted on May 12, 2011 by admin

I use covered calls as my main trading strategy.  I do so for several reasons. Steady profit Less risky than owning stocks alone Guaranteed profit from premium selling. What is a Covered call?  Covered call means that you buy certain … Continue reading →

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Falling market today.

Posted on May 11, 2011 by admin

The market is fluctuating (as expected).  SP500 is ~1340, the support line.  So far today, the market lost what it gained in the past 2 days.  This is not surprising.  The most likely scenario is that the market trades in … Continue reading →

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PCLN, NFLX & LVS spreads

Posted on May 10, 2011 by admin

Today, I set up several spreads: PCLN: long weekly 510 put, short weekly 515 put, net credit: $.6/spread.  This is a bit riskier than the 500/505 spread.  Due to low volume, I couldn’t get 500/505 nor 505/510 spreads.  The 510/515 … Continue reading →

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Next Week’s Trading Prospects

Posted on May 8, 2011 by admin

Several possible trades to consider: PCLN, 50 day SMA is 500.  PCLN has almost never fallen below 50 SMA, except during the flash crash.  A spread of 495/500 carries a relatively low risk.  Long 495 May 13 put, short 500 … Continue reading →

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