KDK Options has purchased a XLF January $20.00 call option. The cost of the trade was $0.45 before commissions and fees. The expectation is for the trade to get to $1.00. Some reasons for the trade are below:
- Banks are starting to move in a trend upwards
- XLF provides some protection in the form of diversification (avoiding a sharp Wells Fargo drop)
- Trading comps were up
- M&A looks to be heating up
**
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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