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 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 →

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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 →

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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 →

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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 →

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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 →

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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 →

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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 →

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Trade of this week: covered call of FFIV (strike 105).

Posted on June 13, 2011 by admin

Was out of town last week and just returned late yesterday.  Last week was another bloodbath and I bled as well.  Several of my option spreads lost money.  My NFLX 160 put long was exercised and I was long 10ooo … Continue reading →

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Positions for this week

Posted on June 6, 2011 by admin

Bidu: set up 2 spreads in 2 different accounts.  120-125 put spread for $0.4/sh profit. 125-130 for another account for $0.92/sh. nflx, 255-260, put spread for $0.8/sh pcln, put spread 480-485, $0.35/sh mcp, put spread 55-57.5, $0.38/sh.

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