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. **
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