Thursday, August 13, 2015

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. 

Friday, August 7, 2015

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. 

Tuesday, August 4, 2015

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. **