Along with the global weakness again, MCP dropped more than 5% this morning. In one account, I have MCP ($50 strike) expiring tomorrow. I rolled it up (bought MCP $50 Aug 20 and sold Sept. 17 $50) with a credit of $290/contract, or 19.33% return in one month (premium sold or the money in the account / margin requirement).
I did this trade for 2 reasons:
1. Taking advantage of this weakness.
2. I sold a monthly instead of a weekly. This is a more conservative approach.
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.
