I believe the markets are trading near the lower end of the trading range. To take advantage of this weakness, I wrote more covered calls for FFIV and MCP, with a bullish bias (i.e., the calls I sold have out of the money strikes).
Bought FFIV at $73.61, sold FFIV weekly call at $75 for $2.11. Net cost: $71.5/share.
Bought MCP at $51.72/sh and sold calls (strike 52.5, expires this Friday) for 1.57/sh. Net cost: $50.15/sh.
You may wonder where do I have the extra money to keep adding new positions. Well, every week, when I roll up options or when existing options expire, I receive income. I use this income to add new positions.
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.
