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.

Credit Spreads of FFIV

Posted on January 13, 2014 by admin

My FFIV  Jan. 18th 2014 short calls (part of the covered call) are expiring in a few days.  It’s deep ITM now.  I see 2 ways to roll this up. 1. Credit spread of $80 (1/18/14) to $85 (7/19/14): net … Continue reading →

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CRM: ITM credit spread, yielding 25% annual return

Posted on January 13, 2014 by admin

My CRM (now at $57.17) short call of $43.75 (part of the covered call) contracts are due to expire this Friday.  CRM’s 200 day MA is ~$47.  Since 43.5 is too deep ITM, I want to raise the strike price … Continue reading →

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WHX: Trusts: Profitable Or Principal Traps? Learn To Understand

Posted on November 13, 2013 by admin

Trusts: Profitable Or Principal Traps? Learn To Understand A trust is an investment you can buy into that will pay a return on your investment. Most companies that create trusts do so for the purpose of recovering their investment and … Continue reading →

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AGNC: a great candidate for dividend + option premium strategy

Posted on September 19, 2013 by admin

AGNC pays 13.31% dividend.  What’s more interesting is this is also a weekly option stock with high liquidity. I wrote a covered call of AGNC with a net debit of 23.58 for a call strike of 24 (exp. Sept 27th). … Continue reading →

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CYS

Posted on September 18, 2013 by admin

CYS is a high dividend paying stock ($0.34/sh with a dividend yield of 16.77%).  It’s ex-dividend date for this quarter is Sept. 20th.  I wrote a covered call for CYS today, with the option to expire on Sept 21st.  The … Continue reading →

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A strategy to cash in on both Dividend + Option Premium

Posted on August 29, 2013 by admin

When a dividend paying stock also has options, one way to cash in on both the dividend and the option premium is to write an ITM covered call right before the ex-dividend day. Take WHX.  WHX’s Sept. 13 calls for … Continue reading →

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ANR: -920.76

Posted on May 3, 2013 by admin

Bought 50 ANR May 3 2013 7.5 Put @ 0.45. Closed on May 3rd at 11 for a loss of $920.76.

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10 Factors to Consider When Selecting a Stock

Posted on April 27, 2013 by admin

10 Factors to Consider When Selecting a Stock #1. 52-Week Range Typically a stock is considered a good value if it is trading near its 52-week low.  However, make sure the stock is on a rebound if it is near … Continue reading →

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