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.

Roll Up

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

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Added more FFIV and MCP shares today

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

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Market Condition: range bound, slightly bullish.

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

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Rolling up my options.

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

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I wrote a covered call of SLW today

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

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Market Condition: cautiously bullish

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

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Market condition: bearish near term, long term bullish.

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

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Rolling up MCP option due to expire tomorrow.

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

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Adding more BIDU positions, taking advantage of this weakness.

BIDU is showing some weakness due to some negative reports.  BIDU is a good stock with very strong chart pattern.  This weakness is a good chance to add more positions which I did. Bought BIDU and sold calls (strike $135, … Continue reading

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CRM: roll up before earnings report.

CRM will release its earnings report on Aug. 19th (Thursday).  I own CRM.  What should I do? CRM has been trading the $140-150 range prior to this recent downturn.  The call option (part of covered call) that I am short … Continue reading

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