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.

What to trade?

Posted on June 5, 2011 by admin

bidu: spread of 125-130 is still a good trade.  bidu has never fallen and stayed below 130 since March.  A put spread of 125-130 gives $1.15/sh; 120-125 of $0.44.  120-125 is a much safer and yet still profitable trade. nflx: … Continue reading →

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Market Condition: Neutral to Slightly Bullish

Posted on June 3, 2011 by admin

ChartAdvisor.com: cautious (bearish). “There are times when it is better to reduce exposure to the markets and wait patiently for the markets to give you an opportunity. This is likely one of those times.” SchaffersorsResearch.com: this week’s Outlook actually rings … Continue reading →

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Weekly Summary: another great week (for my accounts)

Posted on June 3, 2011 by admin

Well, the Wall Street was a bloodbath this week but my trades were all successful (except one, FFIV whose position I closed before the closing today with a very trivial loss).   I practically doubled one of my trading accounts … Continue reading →

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SLW

Posted on June 2, 2011 by admin

I added a covered call of SLW today (i.e., bought SLW and sold SLW Jun. 18 expiration call at strike price of 36).  My cost (cost of purchasing SLW shares – the profit of selling Jun. 18 call) = $34.7. … Continue reading →

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Several bullish (put) spreads for the week

Posted on May 31, 2011 by admin

I can’t tell how the market will go in the long term, but it appears the market is calm and bullish for this short week.  Also the major indexes all bounced above their support level, making these support levels even … Continue reading →

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YHOO

Posted on May 30, 2011 by admin

YHOO is another interesting stock with a high TV.  It’s now right on SMA200.  The question is whether YHOO has done selling.  It’s ATM weekly call (16) has 1.3% return and its Jun. 18 ATM call has 3% return.  

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MCP

Posted on May 30, 2011 by admin

MCP has the highest time value among all the weeklys (2.42% for an ATM strike of 62.5, exp in 4 days).  MCP’s recent fall from high 70s appears to have halted at ~60.  For an ITM strike of 60 (a … Continue reading →

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SLW

Posted on May 30, 2011 by admin

SLW is another interesting stock.  SMA200 has been a strong support for the past 2 years.  SLW is above SMA200 (34.05) and has just broke out of the SMA 20 (35.5).  A covered call with a weekly 36 call yields … Continue reading →

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A run-up of weeklys sorted by the time values

Posted on May 30, 2011 by admin

The following shows part of a table of CBOE weekly options with calculated time values and other values.  The lower of their position in the table, the higher the time value, i.e., MCP has the highest time value, whereas AIG, … Continue reading →

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NVDA

Posted on May 30, 2011 by admin

NVDA is breaking out of the SMA 20 and 50 lines.  It shows a strong support at 17.5-18 range.  A covered-call with an ITM strike of 19 (2.46% ITM) yields 1% return in 4 days 0r June 18 strike 19 … Continue reading →

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