Ford Mar $15.00 Call Option Purchased

KDK Options purchased a Ford March $15.00 Call Option. The price paid for the option was $0.25 before commissions and fees. The goal of the option is $2.50.

Some reasons for the purchase are below:

- Low PE ratio with rising revenues
- Work in the driverless car area, possible partnership with Google
- R1, and R2 support trade
- KDK Fund owns shares of Ford (see 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. **

Be sure to also check out our stock page, KDK Fund.

Week (12/25) In Review (WFC purchase, more)

KDK Options purchased a Wells Fargo call option (link to story here.) KDK Options will continue to hold the trade. Some metrics of the trade are below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
WFC	Feb $57.50 C	$0.50	$0.43	$54.82	2/19/2016	Current Holding

** 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. **

Be sure to also check out our stock page, KDK Fund.

New Purchase of WFC Feb $57.50 Call

KDK Options has purchased a Wells Fargo February $57.50 call option. The price paid for the call was $0.50 before fees and commissions. The goal price of the trade is $2.50. Some reasons for the trade are below:

- stock in a bullish trend
- R1 and R2 support price projections
- December interest rate hike has been passed on to customers
- Continued growth in economy
- Earnings growth in January should support higher stock price


** 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. **

Be sure to also check out our stock page, KDK Fund.

Week (11/27) In Review (UUP, more)

There were no new purchases or sales this week. The next purchase is scheduled to happen in 6-9 weeks.

The current holding in UUP. The plan is to continue to hold on to the trade. It is now in the money and there is news in the currency world that should move the price higher.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
UUP	Jan $26.00 Call	$0.35	$0.38	$26.07	1/15/2015	Current Holding

 ** 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. **

Be sure to also check out our stock page, KDK Fund.

Week (11/13) In Review (UUP, Apple, more)

A UUP January $26.00 call option was purchased (link here). An Apple December $130 call option was sold (link here).

The plan is to continue to hold onto the UUP (US Dollar) trade. 


   ** 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. **

Be sure to also check out our stock page, KDK Fund.

New Call Option Trade in UUP (US Dollar)

KDK Options has opened a new trade. It has purchased a US Dollar ETF (UUP) January $26.00 call option. The price of the option was $0.39 before fees and commissions. The expected value for the trade is $1.00. Some reasons for the trade are below.

- Likelihood of a rate hike in December is high
- Chart is indicating another up leg is upon us
- Other Central banks are looking to continue to ease


** 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. **

Be sure to also check out our stock page, KDK Fund.

Apple Call Trade Ends

The Apple December $130 call trade ended with the stock declining and the option price hitting the stop loss price. Some reasons for the trade ending are below.

- KDK Options money management policies are designed to make sure that we are always able to capitalize on opportunities. This requires a specific design towards stop loss policy when a legitimate opportunity slips into hope territory.

- The likelihood of a rally past $130 by December 18th was greatly diminished by the stock falling below $120.

- The weekly chart showed a candle top last week with a strong red candle this week.

- While still bullish on Apple in general, the December time frame for the trade required a consistent bullish move which yesterday's action removed.

Week (11/6) In Review (Apple, more)

An Apple December $130 call option was purchased this week (post link here). There were no options sales this week. The next options trade will likely happen after the Apple trade is finished.


** 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. **

Be sure to also check out our stock page, KDK Fund.

Purchased Apple Call Option

KDK Options purchased an Apple December $130 call option. The price of the option was $0.95. The expectation is for the option to reach $5.00. The current price of the stock is about $121.00. Some of the reasons for the purchase are below.

- Stock is trending up
- Holiday season is upon us
- Market is in a bullish mood.

** 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. **

Be sure to also check out our stock page, KDK Fund.

Southwest Airlines Nov $43 Call Trade Ends

The Southwest Airlines November $43.00 Call trade has ended. The call was sold for $1.15 before fees and commissions. That is a 92% gain from the purchase price of $0.60. The price of the stock at the time of sale was $43.30. Reasons for the sale are below.

- Price of option hit a stop price. The stop price set was $1.25. We are not too happy that Optionshouse was only able to fill it at $1.15.

 KDK Options is in the process of finding the next trade. 

 ** 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. **

Be sure to also check out our stock page, KDK Fund.

Week 10/16 In Review (Southwest Airlines, more)

A Southwest Airlines November 43.00 call option was purchased (link here) . The Bank of America October 18.00 call option expired worthless. There is no scheduled time for the next purchase.  Details of current holdings are below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
LUV	Nov $43.00 Call	$0.60	$0.66	$40.56	11/20/2015	Current Holding

** 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. **

Be sure to also check out our stock page, KDK Fund.

November Call Position Opened in Southwest Airlines

KDK Options has purchased Southwest Nov $43.00 call options. The price was $0.60. The goal is $1.50. Reasons for the trade are below.

- Broken $40.00 resistance.
- Lower oil prices
- bookings are strong


** 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. **

Be sure to also check out our stock page, KDK Fund.

New Purchase of Bank of America Call Options

KDK Options has purchased the Bank of America October $18.00 call options. The price of the option was $0.08. The goal of the trade is to see the option reach $0.25. Reasons for the trade are below:

- Plenty of upside in the stock

- Earnings run up probability is high

- Federal Reserve meets on the 16th and 17th

- Price of options allows for 5X gain in trade.

** 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. **

Be sure to also check out our stock page, KDK Fund.

MS Oct $40 Call Trade Ends

Unfortunately, the Morgan Stanley $40.00 call trade got caught up in the Chinese Yuan devaluation and hit KDK Option's stop loss price. The trade was sold at $0.42 per contract.

One big reason KDK Options is able to continue trading successfully is that there are stop losses set before the trade happens. One good rule of thumb to live by is to cut losses short (like this one). Could the trade come back and be successful? Absolutely. But there is a higher probability that it doesn't. Which is sometimes a killer on trading accounts. Better to accept the medicine and move on to the next trade.

KDK Fund is currently researching other trades.

** 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. **

Be sure to also check out our stock page, KDK Fund. 

Week (8/7) In Review (Morgan Stanley)

Hello

The current Morgan Stanley Oct $40.00 call option trade will continue. The current price of each contract is $0.84. The stock is currently priced at $38.58. That is a $0.10 less than the purchase price. Below is a link to the purchase blog. 

Purchase Blog

** 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. **

Be sure to also check out our stock page, KDK Fund. 

New Position Opened Up In Morgan Stanley

Today, KDK Options made a purchase of the Morgan Stanley October $40.00 call options. The cost of each option was $0.94 before commissions. The goal of the trade is for the option to reach $4.00 per contract. Some reasons for the purchase are below.

- Bank stocks are in an uptrend.

- Morgan Stanley has risen to the top of the trading business.

- The US Dollar is at a strong level.

- Morgan Stanley has retreated from a high of around $42.00 to a $38.75 support level

As always, we would like to thank OptionsHouse for executing the trade.


** 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. **

Week 5/22 XLF Trade Review

This week saw XLF drop to $24.86. KDK Options will continue the trade. The expectation is still for the July $25.00 call option to reach $1.00.

** 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 Status

The position in July XLF $25.00 call options stays the same. The ETF seems to be breaking out to the upside. It is currently trading at the money $25.00. The option price is currently at $0.47.

The expectation is for the option to reach $1.00.


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 Call Position in XLF

KDK Options has purchased call options in XLF today. The July $25.00 strike price was purchased. The cost was $0.37 before commissions and fees. The expectation is that the option will rise to $1.00. Some reasons for the purchase are below:

- Continued upward trend in financials
- 10+% movement upwards before hitting 52 week highs on most financials
- Increasing pressure to raise rates



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. **

Headfake or Breakout for SPY

The SPY is looking like it is again reaching the top of a range that has existed since late October 2014. It has been in the 200-207ish range during that time. But in this process, there have been lower and lower highs each time after hitting the 200 support. That is until this week's movement. The question is if this a head fake, or a breakout. 

It seems to be more and more clear to KDK Options that the next leg for the SPY is going to reach either 180 or 220 by the end June of 2015. On the upside, that represents a little more than a 6% move from today's prices. On the downside, the gain would be about 13%. But using options will be a major lever in finding profit in this case.

KDK Options is looking at the different options pairs that might fit a trade with these expectations. Specifically, are there any call/put option combinations that can have a profit when one is fully valued and the other is worthless at the end of the trade? If we find a pair to trade, we will update the post.

Good luck to all!

    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. **

Week 1/9 In Review (Wells Fargo)

There were no new purchases or sales during the week. The next expected trade will happen in the next 4-7 weeks. Some metrics of the current holdings are below.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
WFC	Feb $57.50 Call Option	$0.34	$0.06	$52.80	2/20/2015	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. **

Week 1/2 In Review (Wells Fargo)

There were no new purchases or sales during the week. KDK Options is keeping the current Wells Fargo trade open. The next trade will probably be in the next 3-5 weeks.

Security	Option	Option Purchase Price	Current Option Price	Current Security Price	Option End Date	Option Sell Price
WFC	Feb $57.50 Call Option	$0.34	$0.26	$54.70	2/20/2015	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. **