BIDU is showing some weakness due to some negative reports. BIDU is a good stock with very strong chart pattern. This weakness is a good chance to add more positions which I did.
Bought BIDU and sold calls (strike $135, exp. Aug 20th), cost: $132. The maximal return is 8.5% in 3 days (profit / margin requirement), if BIDU stays above $135. Break even point is $132. If BIDU stays above $135 by friday, I plan to roll it up (calendar spread) to next week (weeklys have higher % time value). If BIDU falls below $135, I’ll let the options expire and establish new ones next week.
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.
