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.

PCLN, NFLX & LVS spreads

Posted on May 10, 2011 by admin

Today, I set up several spreads: PCLN: long weekly 510 put, short weekly 515 put, net credit: $.6/spread.  This is a bit riskier than the 500/505 spread.  Due to low volume, I couldn’t get 500/505 nor 505/510 spreads.  The 510/515 … Continue reading →

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Next Week’s Trading Prospects

Posted on May 8, 2011 by admin

Several possible trades to consider: PCLN, 50 day SMA is 500.  PCLN has almost never fallen below 50 SMA, except during the flash crash.  A spread of 495/500 carries a relatively low risk.  Long 495 May 13 put, short 500 … Continue reading →

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Market Condition: Neutral to Slightly Bullish

Posted on May 7, 2011 by admin

ChartAdvisor.com: The market is near oversold, but is still in an uptrend. Time to look for opportunities.  When placing trades, we may set up neutral to mildly bullish trades (i.e., using slightly in the money or at the money strikes). … Continue reading →

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Weekly Summary

Posted on May 6, 2011 by admin

All our spreads of this week were successful.  We made $30/contract on FFIV, $32.22/contract on NFLX.  As a result, this trading account that was started only 6 weeks ago (3/25/11) has increased its portfolio value by 50%. The main trading … Continue reading →

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Several stocks are close to our strike prices.

Posted on May 4, 2011 by admin

The markets are experiencing some profit taking and consolidations after a very nice bull run.  Several issues are approaching our strike price.  These include OPEN, NFLX, FFIV and LVS. OPEN: We started a position on OPEN on 3/21/11 with a … Continue reading →

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Market Condition: Cautiously bullish

Posted on April 30, 2011 by admin

Although the major indexes are hitting technical resistance, Schaeffersresearch.com is bullish in this week’s Monday Morning Outlook. Chartadvisor.com’s author (Joey Fundora) is a bit more cautious in his recent post, due to the overbought market condition. I will tread the … Continue reading →

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Weekly Trading Summary

Posted on April 30, 2011 by admin

Another profitable week.  Other than the covered calls that are already set up, I also traded a few short term spreads. BIDU: I set up a call spread (long 135/short 140) in one account ($85.00/pair of contract) and a put … Continue reading →

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We survived BIDU earnings and our BIDU spreads are making money.

Posted on April 28, 2011 by admin

BIDU reported good earnings and good forecast.  Today BIDU shares are up a bit.  Our BIDU spreads (135/140) are making money.  Two points to take home with: BIDU is not as volatile as used to be, reflected by the smaller … Continue reading →

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Option Basics

Posted on April 27, 2011 by admin

To learn the basics about option trading, read the following sites: www.Investopedia.com (1st choice for definition of various terms and concepts). www.Schaeffersresearch.com www.CBOE.com

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How to Monitor Market Conditions

Posted on April 27, 2011 by admin

MUST Read: ChartAdvisor.com.  This site publishes a weekly Market Summary on Friday.  An excellent chart pattern analysis site, it gives a good reading on the market condition.  I use this to help gauge my trades.  If one reviews the Market … Continue reading →

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