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.

It appears that we are surviving the NFLX post earning shock.

Posted on April 27, 2011 by admin

NFLX reported good earnings, but its next quarter forecast spooked investors and the shares went down 9% yesterday.  The share prices are stable today, a good sign.  With our fingers crossed, hope NFLX shares won’t continue its descent to below … Continue reading →

Posted in Daily Journal | Leave a comment

FFIV spread

Posted on April 26, 2011 by admin

FFIV is pulling back a bit from post earrings high of $106+.  I think this is due to profit taking.  It is unlikely to go below $100 in near term.  So I set up a spread of FFIV put, long … Continue reading →

Posted in Today's Trade | Leave a comment

NFLX trade

Posted on April 25, 2011 by admin

NFLX was scheduled to release earnings after hours today.  I created a spread today: long NFLX 215 put, short NFLX 220 put, expiring in 4 days, cost: $4.35/pair.  If NFLX stays above 220 by this Friday, my potential profit is … Continue reading →

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Bidu: how to hedge

Posted on April 25, 2011 by admin

Bidu is scheduled to report earnings in 2 days (Apr. 27th).  I usually don’t trade issues before earnings (too risky).  However, I placed some Bidu bullish trades today. Today’s trade: Bidu spread: Long 135 call, short 140 call, expire in … Continue reading →

Posted in Today's Trade, Trading Strategy | 1 Comment

Today’s Trade: Roll Up FFIV calls

Posted on April 21, 2011 by admin

Today is the last trading day of the week.  We are having a terrific week so far.  FFIV went up a lot, leaving my FFIV 95 calls expiring today in the money.  As a result, my long FFIV shares are … Continue reading →

Posted in Today's Trade, Trading Strategy | 1 Comment

LVS

Posted on April 19, 2011 by admin

LVS was moving lower earlier today.  I entered a bull debit spread of long 43 and short 44, cost $.85/pair.  Potential profit $0.15.  Expiration in 2 days.  LVS’s chart is bullish.  Even when the market was dropping 1% yesterday, LVS … Continue reading →

Posted in Today's Trade | 2 Comments

Today’s trade

Posted on April 18, 2011 by admin

The market went down today, but it is still within a trading range.  Here are my trades today: Bidu spread: bullish bull debit spread call, 135/140, weekly expiring in 4 days.  Cost: $4.5/pair, if Bidu stays above $140 by the … Continue reading →

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Case study of covered call & roll up.

Posted on April 15, 2011 by admin

The following example shows how to profit by using covered call + roll up (call spread).  The following case generated 15% return in 3 weeks, while FFIV’s price changed from 95.67 to 94.69, only about $1.  If you bought and … Continue reading →

Posted in Trading Strategy | 1 Comment