Flash Opportunity: China Performs. We positioned for it. We win. And You win.
Thank you for trusting the Model - Special Offer Inside.
Note: This has personally been a very good week to me, and I want to give special pricing to give back for Karma. I’ve got a special offer for you. 42.8% Off Forever. 20 Spots. Take Advantage of it now. Expires tonight.
Folks,
Every time there’s something good that happens to our Community, I want to share the good karma with you. U.S. Stocks have soared, and I wanted to also help the folks find alpha in China as well to find “catch up ideas” that will perform when sentiment stabilized. See here that I’ve made a lot of commentary public to help the Public find more portfolio gains in a diversifying manner.
I spent a significant amount of time in the past several weeks looking for the macro and technical structure for China/HK stocks to align so that we could add a diversifying-alpha generating idea to our portfolio. Long-time folks know that I spend a lot of my efforts finding differentiating ideas from the Hang Seng and China ADRs, which is a much less covered (let alone understood) area within the investment universe.
As we headed into the Biden-Xi meeting, combined with ECOM earnings from Alibaba and JD, it was my opinion that the intermediate-term opportunity set across Hong Kong and China stocks brightened.
To execute upon this view, I talked about several things inside our Community:
Calls on Alibaba
Calls on KWEB (China Internet ETF)
Bullish on rest of China Sector for tradable upside (with the understanding that China/HK operates with a different rhythm from U.S. stocks)
Personally, I also took a decent sized position in JD as it trades very similar to Alibaba.
Strat 1: Using Calls at nearly a 2:1 ratio on KWEB ETF to express a clear bullish position.
Strat 2: Buying Long-Dated Out of the Money Calls on JD.com as implied volatility for the option was low and the valuation was reasonable for an intermediate-term bullish position. Combine this with Direct Shares Position.
Strat 3: Multi-Legged Position on BABA to take advantage of its Range. (Explained in my Monday Premium Note)
In principle, my approach has always been to find many small opportunities to add up to a Big Pie.
I aim to find consistency over longer periods of time, and once again, am not interested in “the big one.”
This means my methodology usually sells my winners “too quickly” but in return, I try to go for less pronounced drawdowns that we saw in SPY and QQQ.
Can I outperform the marvelous QQQ in this raging bull market? No I don’t think so. I’ll try, but I don’t really index against the market so it will be very hard as I primarily rely on stock selection and sector rotation.
That said, from a RISK-adjusted perspective, I take far less risk than the QQQ in my view.
My approach, by design, is aimed at profitability first and outperformance second. This means even if 2024 turns out to be a bad year for markets, I still hope to be profitable. Or if I am to lose, to lose as least as possible.
I go for a smooth equity curve rather than a lumpy one. I now sincerely treat Trading as a business.
Folks, I am committed to upgrading my own skills on a daily basis. And that means as I become an even more advanced player in the markets, what you will witness is
An objective view on where risk/reward is
More ways to “handle” a losing/winning position using Options
The power of the levels I provide as a result of me spending a lot of “screen time”. I put in several hours a day of screen time to feel the pulse of the markets, along with thoughtful journaling.
I hope you will join our Community. At the end of the day, you will observe that I’m really here to help the People.
20 Spots for this offer.
Please take advantage of this. Next year, I will be raising prices as I add further advanced strategy for our Community. I only raise prices when the value proposition changes, and do not raise prices “due to inflation”. I sincerely believe the ongoing education that I provide will help you grow as an Investor and Trader.
These flash deals represent the best pricing that I can give to the public while making sure the economics are fair for me.
For those who have an open mind and wish to grow as an Investor/Trader, I believe what I offer is asymmetrical relative to the entry. The first thing I would do upon joining is taking advantage of the Options Bootcamp that I’ve created for Members. It explains my methodology.
Yours Truly,
Larry Cheung, CFA
Please make sure to read my 4-6 previous letters to understand my fundamental/technical/macro views. Every update builds on top of the others. I write quite frequently now so make sure to read many of my previous editions, which often also include valuable educational content to help you grow as an investor/trader. While I do enjoy sharing my personal journaling of the markets, this is not individual customized financial advice.
Tell friends and family about the work we do - I appreciate you. Spread my methodology where I simultaneously employ Fundamentals, Macro, and Technical analysis into my views to help the good folks find alpha.
Disclaimer: My investment community is not investment, financial, or trading advice, but for educational informational purposes only. I am happy to share my personal opinions which I provide as my personal journal. Trading of any kind of securities involves a lot of risk. No guarantee of any profit whatsoever is made. Investors may lose everything they have. Practice extreme caution. No profit is guaranteed whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this publication are NOT registered as securities broker-dealers or investment advisors either with the U.S. SEC, CFTC or with any other securities/regulatory authority. Make sure to consult with a registered investment advisor, broker-dealer, and/or financial advisor.