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: cautious -> bullish

Posted on July 15, 2011 by admin

ChartAdvisor.com thinks the markets are uncertain now.  It may continue upward to eventually break out or go downward to breakdown the June lows.  It asks for patience and caution. Schaefferesearch.com is, however, more bullish.  SP500 support 1295-1305.  Resistance: 1333-1340.  A higher … Continue reading →

Posted in Market Condition | 4 Comments

Roll up my FFIV calls.

Posted on July 13, 2011 by admin

I was short FFIV calls (in a covered call) expiring this Friday at strikes of $97.5 and $100.  With FFIV advancing to above $110, I have 2 choices: 1. to buy back to cover those short calls; 2.  to buy … Continue reading →

Posted in Today's Trade, Trading Strategy | 6 Comments

Roll up of covered calls

Posted on July 11, 2011 by admin

I have ITM FFIV calls that are due to expire this week.  This week’s weakness should be a good opportunity to roll up those calls to a later expiration date.  Reason: options with closer expiration dates increase or decrease in … Continue reading →

Posted in Daily Journal | Leave a comment

Market outlook: long term: bullish, near term: bumpy.

Posted on July 11, 2011 by admin

Bernie Schaeffer’s montly Option Advisory Comment is my must read.  You can find this month’s here.  In summary, he is bullish for the remainder of this year. Monday Morning Outlook, and Chartadvisor.com. My advice: Monday’s market drop may be a good … Continue reading →

Posted in Market Condition | Leave a comment

Mt. Fuji, a peaceful retreat.

Posted on July 11, 2011 by admin

I am currently vacationing in Mt. Fuji, Japan.  It’s such a peaceful retreat.  Taken from the hotel balcony.  We are staying in 月秀峰 湖月Hotel，with private hot spring on the balcony looking out to Mt. Fuji and formal Japanese dinner.  The … Continue reading →

Posted in Daily Journal | Leave a comment

Market Condition: volatile, but hopeful

Posted on June 26, 2011 by admin

Schaeffersresearch.com and ChartAdvisor.com: Both these 2 sites show hopeful signs in the market, while maintaining the inherent existing risks.  The message is that the market bearish sentiment is much more pronounced than the degree of the pull back in the market … Continue reading →

Posted in Market Condition | 2 Comments

Sold OPEN, Bought MCP (covered call)

Posted on June 20, 2011 by admin

I have extra buying power and also my OPEN options expired.  I need to either sell more OPEN options or to sell OPEN and using the funds to get into a better trade.  I did the following calculation:   OPEN  Aug. … Continue reading →

Posted in Today's Trade | Leave a comment

How my other positions are faring in this volatile market.

Posted on June 19, 2011 by admin

I have BIDU, CRM, FFIV, PCLN, LVS, OPEN, SLW and MCP in my holdings.  I already discussed about OPEN, SLW and a portion of my FFIV holdings.  Here is how my other positions are doing.  BIDU, CRM and PCLN and … Continue reading →

Posted in Daily Journal, Educational | Leave a comment

My trades for next week.

Posted on June 18, 2011 by admin

Well, several options expired today.  They include OPEN, FFIF (I have several options with different expiries) and SLW.  How am I going to replace these expired options? OPEN.  I sold a portion of OPEN at ~80.30 (broke even) to provide … Continue reading →

Posted in Daily Journal, Today's Trade | Leave a comment

Market Condition: Cautious

Posted on June 18, 2011 by admin

ChartAdvisor.com: “The markets continue to deteriorate, and while a bounce is likely soon, the markets can always become more oversold first…These are the markets that separate the traders who are consistently profitable from the revolving door of amateur traders. Undisciplined … Continue reading →

Posted in Market Condition | Leave a comment