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.

Market Condition: range bound, cautious. Levels to watch, DJIA 11577, SPX 1225, COMP 2652, VIX 30

Posted on September 17, 2011 by admin

Schaeffersresearch.com: Chartadvisor.com: Both websites are painting a similar picture: while the last week’s market movements is positive, the indexes are still within a trading range.  Most of these indexes are approaching the higher end of the trading range, making it … Continue reading →

Posted in Market Condition | Leave a comment

Wrote more covered calls of NFLX

Posted on September 16, 2011 by admin

Bought NFLX and sold NFLX calls (Sept 23, $160), net cost: $153.42/sh.  Potential return (if NFLX stays above 160 by Sept 23rd): 13.7% in one week.

Posted in Today's Trade | 1 Comment

Roll Up

Posted on September 15, 2011 by admin

Monthly options for Sept are due to expire tomorrow.  The following are what I did: BIDU: (options spreads) bought to cover BIDU Sept 2011 $105 strike and sold Mar 2012 $110 strike for $3/sh credit.  The net gain on this … Continue reading →

Posted in Today's Trade | 2 Comments

Added more FFIV and MCP shares today

Posted on September 12, 2011 by admin

I believe the markets are trading near the lower end of the trading range.  To take advantage of this weakness, I wrote more covered calls for FFIV  and MCP, with a bullish bias (i.e., the calls I sold have out … Continue reading →

Posted in Today's Trade | Leave a comment

Market Condition: range bound, slightly bullish.

Posted on September 10, 2011 by admin

Schaeffersresearch.com: “Our takeaway is that this is a market that has the proper sentiment backdrop for a major V-bottom, but the technical backdrop is not as supportive. So, in the absence of a catalyst, the pressure to unwind bearish bets or … Continue reading →

Posted in Market Condition | Leave a comment

Rolling up my options.

Posted on September 9, 2011 by admin

Today is the last trading day for the weekly expiring options.  I did the following trades. SLW.  I bought SLW 2 days ago and wrote calls with a strike of 39.  Today SLW is above 39.  I like SLW and … Continue reading →

Posted in Today's Trade | Leave a comment

I wrote a covered call of SLW today

Posted on September 7, 2011 by admin

Today’s trade: Bought SLW at $39.58/sh, sold SLW calls, expiring Sept 9th, strike 39, for $1.19.  Net cost to me: $39.58 – $1.19 = $38.39/sh.  If SLW price is above $39 by close this Friday (3 days), my profit is … Continue reading →

Posted in Daily Journal | Leave a comment

Market Condition: cautiously bullish

Posted on August 28, 2011 by admin

Schaeffersresearch.com: although the market has been miserable, there are signs of a market bottom: VIX stayed below 50, hedge fund appears to be buying again, etc.  They even recommend investors to “dip your toes into highly shorted equities that are trading … Continue reading →

Posted in Market Condition | Leave a comment

Market condition: bearish near term, long term bullish.

Posted on August 20, 2011 by admin

Schaeffersresearch.com: the markets now look pretty bearish.  However, there is some hope: VIX is still below 50 (a critical area to watch). Chartadvisor.com: bearish. My take: the markets remain very choppy.  The real question is whether we have hit  the bottom … Continue reading →

Posted in Market Condition | Leave a comment

Rolling up MCP option due to expire tomorrow.

Posted on August 18, 2011 by admin

Along with the global weakness again, MCP dropped  more than 5% this morning.  In one account, I have MCP ($50 strike) expiring tomorrow.  I rolled it up (bought MCP $50 Aug 20 and sold Sept. 17 $50) with a credit … Continue reading →

Posted in Daily Journal | Leave a comment