BABA is the 4th on my new list of 16 stocks . BABA had 2 disappointing earnings, but the market responded positively to the most recent earnings, with several analysts’ upgrade. BAB is now trading above 200 SMA, RSI not overbought at 55, MACD neutral.
From the previous post, ATM ($90 call) covered call gives one 10% downside protection, 65% ROI/Yr; ITM ($87.5 call) has 11.47% downside protection, 56% ROI/Yr; OTM ($92.5 call), 8.77% downside protection and 74% ROI. I’ll select either ATM or OTM calls, in this case.
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.
