Week 10/24 In Review

There were no purchases or sales this week. The Apple Dec $130 call options are still being held. Metrics of the current holdings are below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
AAPL	Dec $130 Call Option	$0.14	$0.05	$105.00	12/19/2014	Current Holding

If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

How Does Apple Value Its Stock

Apple is currently at all time highs. Today the stock price closed above $104 for the first time. But Apple is also in the midst of buying back stock. So there is a big question sitting out there. Valuation wise, how much of a discount does the stock need to be from their own valuation for Apple to buyback shares?

Normally, companies will buyback shares because they will find that the cash on hand will have a higher rate of return with this action than others like a dividend or acquisition. So there are not too many companies that will have stock buyback programs going on at a time when its stock is at all time highs.

Which begs the question, at what price does Apple value its stock at? Is there knowledge of a return percentage that Apple likes to make on its cash through stock buybacks? Finding this answer to the second question should give a the investor a good idea as to what the company thinks the stock price should be. 

The buybacks continue. The pipeline is full of great products in expanding markets. The dividend was raised in the last year. 

Disclosure - KDK Options owns a Dec $130 call 

  If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

Apple's Earnings

Yesterday, Apple released their July to September quarter earnings. They beat on both the top line (revenue) and the bottom line (earnings). The company is very excited for the future with the release of the new products (iphones, ipads, macs) and services (Apple Pay). they raised guidance on both revenue and earnings for the October to December quarter.  The Apple press release can be found here.

Revenue for the quarter ended up at over $42 billion dollars. That is much higher than the analyst estimate of $39 billion dollars. Earnings for the quarter ended up at $1.42 per share. The analyst estimate was for Apple to earn $1.30 per share. This was  a home run for Tim Cook and company. Future revenue has been revised upward to between $63.5 billion and 65.5 billion. Earnings per share for the current quarter are projected to be around $2.40 per share.

Apple saw a 20% increase in sales of the iphone. That was offset a bit by a 6% drop in ipad sales. There will be a major spike in sales this quarter as Apple promotes the iPhone 6, new ipads, and opens its product lineup to over 100 more countries.

Apple is embarking on influencing new markets and products. With the release of Apple Pay, the iphone 6 and 6+, new ipads, macs, and the coming sales of the Apple Watch, they are geared towards 
 a high level of profitability and success. There is a feeling that analysts that haven't already raised share price targets will do so soon. Cantor Fitzgerald already has a $143 target price. For this reason,
 KDK Options will continue to hold its call option.

 If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **



- Guidance
     - Revenue and EPS
     - # of products expected to be sold

Overall
- New products
- New service (Apple Pay)

Week 10/17 In Review

There were no new purchases or sales this week. KDK Options currently hold an Apple December $130.00 call option. The trade will continue as earnings are released on 10/20. Information on the current holdings is below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date
AAPL	Dec $130 Call Option	$0.14	$0.07	$98.00	12/19/2014

If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

New Purchase in Apple Calls

KDK Options has made a trade buying December Apple $130 call options. The expectation is that the option will reach $2.50 before expiration.  The current price of Apple's stock is about $101. Some of the reasons of the trade are below:

- Apple earnings coming out next week
- Continued revenue growth
- Rotation to safer stocks
- Breakout past $100


 If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

XLF Trade ends in Expiration

The XLF $23.50 call option trade, ending on October 3, has expired worthless. KDK Options is looking into what the next trade will be. The next trade is expected after the next 2-3 weeks.

 If you would like to contact KDK Options, you can leave a comment, email at kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits @kdkoptions. 

For non option trades, take a look at what KDK Fund is currently doing (link here). 
** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **